Why Parametric Insurance
Parametric insurance is a type of insurance that pays out based on predetermined conditions being met. This type of insurance can be beneficial for business owners as it offers more flexibility than traditional insurance policies and allows for more control over the coverage and the ability to tailor the policy to fit the business's specific needs. Key benefits of parametric insurance include:
1. First Dollar Coverage - There is no deductible that has to be met
2. Quick Payout - Typically in 2-weeks or less
3. Customizable - Policies created based on user-defined parameters
4. No Claim Adjusters - Claim payments are based on data
5. Time Specific - Policies can be written for specific hours, days, weeks, or longer
Don't think your business needs parametric insurance? You'd be surprised at what we can do to help keep your business whole and allow you to relax like your customers do.
Since Parametric weather insurance pays out a predetermined amount based on specific weather conditions, such as wave height, wind speed or rainfall it is beneficial for SCUBA / Snorkel companies because it allows them to plan for potential losses due to bad weather and helps them stay in business even if they experience a large number of cancellations.
Weather has an extreme impact on golf courses. A day lost due to rain or other weather event can result in significant lost revenue and additional costs to get the course ready for play again. Parametric insurance offers first dollar loss coverage
Inclement weather can directly impact the revenue generated by an outdoor festival, celebration or concert. Parametric insurance can help bridge the lost revenue gap, ensuring your event remains financially viable, regardless of weather.
Food trucks and other dining establishments can see daily sales drop when it's not a nice day to be outside. This results in lost revenue, and lost inventory and food can go bad. With Parametric insurance every dollar is covered when an insured event occurs
If your business depends on tourism for your revenue, then most likely good weather leads to higher sales. Parametric insurance protects against any first dollar loss if specific conditions are met, helping to keep your business whole and focused on your customers.
Still not sure if you need Parametric insurance is right for your business, or you have some additional questions, we encourage you to speak with one of our experts who can answer your questions and if you decide parametric insurance would benefit your business, we can work with our partners to define a customized solution for your specific business case.