WeatherBacker Products: Event Insurance

The Challenge
An organization headquartered in a city along the east coast is planning to celebrate the city's 200th birthday on Saturday, July 17 between hours 4:00 pm and 10:00 pm. The celebration is to feature a major concert preformed by a world renowned artist followed by a huge fireworks display over the river. There will be all sorts of food and beverages for the celebrators to enjoy. The organizers are counting on food and beverage sales to recover the cost for the organization efforts along with paying for the fireworks display and the musical performers. However, if rain were to fall many people will leave, leaving the organization with minimal revenue to recover the costs to hold the event.

The Solution
ACE WeatherBacker Event Insurance can give the organizers the protection they need in case of such rain out might occur. The organizers know that the event will be held on July 17 between the hours of 4:00 pm and 10:00 pm. They know that if .25 inch or more of rain were to fall just before the event or during the event the celebration will be a complete wash out. They then decide to protect themselves against the rainfall by covering the hours between 3:00 pm and 10:00 pm for a total accumulation .25 inches or more during those hours. If it rains more than .25” the policy is pays out a predetermined amount. If the event stays dry, the food and beverage tickets are sold and the event is a success.

Features*

• Customized programs based on type of event, frequency, venue, weather conditions, anticipated attendance
• Policy pays an agreed value if the adverse weather occurs during a certain time period, even if the insured event is not cancelled
• Business Interruption coverage available
• Adverse Impact: An agreed loss amount calculated based on anticipated revenue and extra expense
• Weather Measurement: May be daily or hourly; measurements may be taken at over 8000 stations countrywide

Target Market

• Event promoters and sponsors
• Companies
• Municipalities
• Individuals
• Associations

Program Parameters

• Adverse Impact: Computations based on anticipated revenue and extra expense
• Weather Measurement: May be daily or hourly; measurements may be taken at over 8000 stations countrywide
• Limits: From $25,000 up to $1,000,000
• Minimum Premium: $25,000

*subject to policy terms and conditions.