Weird Insurance: Weather Insurance

Although weather insurance sounds a bit unconventional, weather insurance is one of the oldest forms of insurance around. Farmers’ earning have been tied to the weather since the beginning of agriculture. Weather insurance covers far more than crops now.


Rain is the primary target of weather insurance. Luckily, rain insurance policies are easy to find. You can choose rain accumulation policies (you are able to select if your golf tournament will be wasted by ½ inches of rain or even ¼ is too much) or dry hours (number of hours with no rain accumulation in a period of time). Similarly you can take counteraction on snow, aiming on the inches per session or per storm. Municipalities and public organs can buy a special version to cover extra costs – snow removal insurance.

And that’s just the beginning. A hot air ballooning show may insure themselves against undesired wind conditions with wind insurance. An ice cream promotion can purchase temperature insurance to secure the investment in the face of cold weather.

Most insurers allow you to combine these policies for any event. Typical clients are film productions (and many insurance companies tailor special policies just for the film industry, including conditions of underwater visibility or lack of snow). Weather insurance is also popular with managers of sports events, concerts, festivals, trade shows…

Even we, whose business is not directly influenced by the weather, can still purchase weather insurance for our free time and our holidays. This quite new product is just acquiring customers around the world. French travel agencies (in cooperation with Aon France) are offering partial money reimbursements, when you encounter more bad days than expected during your stay. Equally, German airline Lufthansa has launched a new sunshine insurance. Passengers from Germany can buy for €20 ($31.24) simple insurance policy, which will pay them €20 for every spoilt day (more than 5mm of rain) during holiday.

If you are on your way to Tunisia or Greece, you probably don’t need weather insurance. And I’m not sure if you are on your way to Vancouver, they will sell you weather insurance. It wouldn’t hurt to ask. You could easily eat for free most days you are away.

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  • Premium Finance
    September 15, 2009 at 11:19 pm

    Nice Post. I really like it.. Thanks for sharing..