What is it?
Event weather insurance covers you against defined weather conditions that result in a reduction of revenue from ticket sales, merchandise, or food & drink trade. It can also protect you against increased costs of site preparation ahead of an event opening.
Fairs or trade shows.
The International Specialty Music Festival runs from the 11th June to the 13th June in Berlin. Each day the gates open at 16.00. But what happens if it rains? The concert still goes ahead of course, people get wet but the festival owners lose out on walk up ticket revenue.
The International Specialty Music Festival buys Weather Insurance protecting up to 50% of their daily forecasted walk up ticket revenue should 0.50cm or more of rain fall at the event location between 10:00 and 16:00 on the relevant event day.
0.76 inches of rain falls between 10:00 and 16:00 on the 11th June.
The amount of rain which falls is less than the trigger point e.g. 0.17cm of rain falls between 10:00 and 16:00 on the 11th June.
Hall’s Ballooning Festival takes place every year on the second weekend of August in Lisbon. It is a free to attend event held on the company director’s land. But he knows that if the Wind Speeds reach 50kph on the event morning, it will not be safe to launch the Balloons and the Fair will be cancelled. This will cost him approximately GBP 40,000.
The company takes out weather insurance to protect against wind speeds gusting at 50kph or more at the event location between 08:00 and 11:00 on the Saturday morning.
The wind speed in Lisbon reaches a maximum of 72kph between 08:00 and 11:00 on the Saturday.
The wind speed in Lisbon reaches a maximum of 48kph between 08:00 and 11:00 on the Saturday. Or the wind speed in Lisbon reaches 72kph between 07:00 and 08:00, but a maximum of 42kph between 08:00 and 11:00.
Gee Gee Racecourse organises a New Year’s Day Horse Racing Meeting each year. If snow or frost occurs in the preceding days, it means that the Client has to hire additional staff to clear the snow and rent frost mats to ensure the day’s racing goes ahead.
A bespoke Weatherproof policy is designed to cover these additional costs if there is more than 5cm of snowfall and/or the temperature falls to or below -5°C between 30th December and 1st January.
Both perils are triggered. The temperature hits a maximum low of -5°C between 00:00 on the 30th December and 00:00 on the 1st January and the snowfall during the same period accumulates to 5.2cm. Only one of the perils is triggered, e.g. either that the temperature hits a maximum low of -6°C between 00:00 on the 30th December and 00:00 on the 1st January and the snowfall during the same period accumulates to 5.2cm.
Neither peril is triggered, e.g. the temperature hits a maximum low of -2°C between 00:00 on the 30th December and 00:00 on the 1st January and the snowfall during the same period accumulates to 4.8cm.