Ensure your business weathers the storm

With businesses being at the mercy of the British weather wouldn’t it be nice to have protection against financial penalties for delay in works due to reasons outside of your control? Clarke Williams has the solution with Weather Insurance, a policy designed to limit your additional costs for unseasonal weather conditions.

Clarke Williams can provide Weather Insurance aimed at Cost Containment, Events, Film & TV, Income Stabilisation and Promotions.

Weather Insurance for Cost Containment

Cost Containment Insurance is designed to limit additional costs incurred from unseasonal weather conditions. Typical scenarios include increased snow removal expenses in an unexpectedly harsh winter, or added air conditioning expenditure over a hot, prolonged summer.

We recommend this for:

• Ground-workers
• Contractors
• Property Managers
• Local Authorities
• Hospitals

Scenario 1

The Risk

Building Contractors Limited undertakes a 12 month contract for the construction of a new build development. They have factored in 20 ‘wet’ days into the contract where no construction works can be undertaken. There is a financial penalty built into their contract for each day of delays over the agreed 12month contract.

The Solution

Clarke Williams arranges a Weather Insurance policy to cover the contractual penalty per ‘wet’ day (defined as any day where 5cm of rain or more occurs between 08:00 and 17:00) in excess of 20 ‘wet’ days.

The Claim

There was unprecedented rainfall during the course of the contract and the client suffered 38 ‘wet’ days which put them 18 days over allowable days noted in the contract. The policy reimburses the client for 18 days’ contractual penalties.

Scenario 2

The Risk

Estate Management UK Ltd manages 500 luxury flats in London. The tenants pay an annual service charge out of which the annual air conditioning costs are met. Estate Management UK Ltd uses average monthly usage to calculate their budget and sets the service charge accordingly. They know that in the event of a hot summer each degree over the monthly average costs them £10 per flat per month. They have built in a contingency for occasional heatwaves up to 3°C above the monthly average.

The Solution

Clarke Williams arrange a Weather Insurance policy to pay out £5,000 per degree in excess of 3°C above the monthly average for London

The Claim

London suffers a heatwave with average temperatures in July of 30°C which is 5°C above the monthly average. The policy pays out £10,000 to cover the additional expenses, over and above their 3°C contingency, suffered by Estate Management UK Ltd.

Scenario 3

The Risk

Groundwork Contractors UK Ltd undertakes a 6 month contract to install new footings for a commercial property and within this have accounted for 8 days where they are unable to work due to adverse weather conditions. There is a financial penalty built into their contract for each day of delays over the agreed 8 days, but because the contract is due to be undertaken between November and April the client is worried about the weather conditions that may arise and affect their scheduled work.

The Solution

Clarke Williams arranges a Weather Insurance policy to cover the contractual penalty per day delayed due to extreme cold weather (defined as any day where the temperature dropped below -2°C between 08:00 and 17:00) in excess of the budgeted 8 days.

The Claim

There was an unprecedented cold snap in December with the temperature recorded at -5°C for 6 consecutive days causing the ground to freeze and works to stop. The client suffered another 8 days of delays over the remaining 5 months of the contract meaning a total of 14 days where they were unable to work due to the temperature dropping below 2°C. The Weather Insurance policy responds to reimburse the client for 6 days work.

Weather Insurance for Events

Event weather insurance provides cover for defined weather conditions that result in a reduction of revenue from ticket sales, merchandise, or food & drink trade. It can also provide cover for any increased costs from the preparation of the site as a result of defined weather conditions ahead of an event opening.

We recommend this for:

• Music festivals
• Sporting events
• Fairs or trade shows

Scenario

The Risk

Shooting Stars UK Ltd host a fireworks evening every year on the first weekend of July in Canterbury. Expected ticket sales based on previous events will net the organiser £20,000 profit.  Although the event can be held if it is raining or cold, excessive wind speeds mean they will be unable to set off the fireworks and the evening will be cancelled.

The Solution

Clarke Williams arranges a Weather Insurance policy so that if the average wind speed between 7.30pm to 8.30pm is in excess of 20mph then the limit of indemnity of £20,000 will be paid, this will allow the cost of the tickets to be refunded to attendees but Shooting Stars UK to not be out of pocket.

The Claim

High winds are expected for most of July and wind speeds are recorded at 26mph on the evening of the event. The event is cancelled and the policy pays £20,000 to Shooting Stars UK Ltd.

Don’t get left out in the cold, contact Clarke Williams today for a no obligation quotation for Weather Insurance on 01732 252898