Special Weather Products: StormTracker

The Challenge
A major resort on the popular Island of St. Thomas in the U.S. Virgin islands in the Caribbean can be significantly impacted by hurricanes. The resort’s traditional property insurance requires large wind storm deductibles. The resort also feels that cash flow and earnings could be significantly impacted if a hurricane strikes nearby.

The Solution
ACE StormTracker is an innovative hurricane insurance product that cost-effectively addresses losses from named hurricanes (hurricanes strong enough to be named by the National Hurricane Center) that pass nearby but do not cause property damage, and named hurricanes that do cause property damage in amounts within the wind deductible.

The policy is designed to respond regardless of whether or not there is property damage. Covered losses may include business interruption, property losses and extra expense.

Features*

• Policy is triggered when a named hurricane arrives within 50 miles of the insured location, subject to policy terms and conditions.
• Payment under the policy is the lesser of actual loss or:
  • 5% of the aggregate limit – Category 1 Hurricane.
  • 10% of the aggregate limit – Category 2 Hurricane.
  • 15% of the aggregate limit – Category 3 Hurricane.
  • 50% of the aggregate limit – Category 4 Hurricane.
  • 100% of the aggregate limit – Category 5 Hurricane.
• The policy may cover multiple hurricanes during the annual policy period.
• The aggregate limit is the most the policy will pay for all covered hurricanes combined.
• Up to $10 million of limit available per location.
• Simple and efficient claims process.
• Designed to coordinate with insured’s property and business interruption policies.
• Property damage is not required.
• Minimum premium is $25,000.
• Excludes named hurricanes at time of policy inception.

Availability

• ACE StormTracker is available as a stand alone policy.
• 24 hour turnaround on quotes and binders.

*subject to policy terms and conditions.