Vortex Weather Insurance has announced the launch of a parametric snow insurance aimed to protect companies against financial loss if a winter has too much or too little snow.
“We are thrilled that our customers now have direct access to our snow risk policies,” said Andy Klaus, Vice President of Business Development for Vortex. “This is just one more way we can help protect our customers from unexpected losses or increased expenses created by the weather.”
The policies have been designed to serve a number of businesses, from ski resorts and snow removal companies that benefit from heavy snow fall, to shopping centres and landscaping businesses that can be negatively impacted by too much snow.
Unlike traditional insurance, which requires proof of damage, Vortex’s new snow policies operate on a parametric model.
Payouts are triggered automatically when a specific, pre-agreed upon weather event occurs – for example, if a certain amount of snow falls on a given day or if a snowless winter impacts revenue.
This approach offers a number of benefits, including no minimum eligibility requirements, premiums are treated as business expenses, and payouts are not typically taxed, which create greater flexibility for the insured.
The policies can be tailored to a business’s specific needs, whether it is an entire winter season or a single-day event. This makes the product a viable option for small businesses, retail centers, school districts, HOAs and other property management companies, airports, colleges and universities.
“The great thing about our parametric snow policies is that they provide peace of mind for every type of business that could be impacted by snow – whether it’s too much snow or too little,” Klaus said.
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