According to National Oceanic and Atmospheric Administration (NOAA), May to April 2019 has been the wettest 12 months in the recorded history. Rains can cause extensive damage to the housing and related sector. Its economic impact to organizers of outdoors events can be significant.
In 2019, when New Orleans Madre Graces Parade had to be cancelled due to unprecedented storms, the losses to the organizers were about 90 million. Organizers of the Hopkins Raspberry Outdoor fair had to cancel their annual event due to incessant rains and refund $5.7 million to the stall owners. The unseasonal rainfall in England in the just concluded edition of ICC World Cup tournament dealt a severe blow of $12 Million to insurance agencies. Broadcaster Star sports had to incur the maximum amount of losses. Organizers of fairs, festivals, golf tournaments, air & art shows, wine festivals, music concerts, TV and commercial film making, corporate launch functions, sporting events face the fury of nature and suffer losses.
Outdoor event organizers can now smartly mitigate the risks due to rains by buying rain coverage. Rain Insurance coverage protects any outdoor events from loss of revenues due to occurrence of rain. Organizers can claim cover against reduced ticket sales, concessions, etc. Outdoor event organizers can structure the policy to recover any un-recoverable expenses that their event may be liable for even though it has rained out. Organizers can cover featured entertainment, venue costs, corporate sponsorship, etc. Organizers can structure a policy to protect a single to multi-day event or avail seasonal coverage (summer months, etc) from adverse effects of weather.
The rain insurance policies reimburse net loss should any event be cancelled, postponed or rescheduled due to rain fall. The possible coverage options are:
• Cumulative Rainfall Coverage: This coverage can be claimed if a specific amount of rain occurs over a specific time period.
• Rain Free or Dry Hours: This coverage can be claimed if a rain occurs during a specific number of hours over a designated time period.
Rain cover insurance can cover temperature, wind, lightening, fog, ceiling height, and visibility. Even indoor event organizers can benefit from rain cover policies. They can cover for snow, temperature, or icy road conditions. Organizers can purchase rain insurance by identifying a selected increment of rainfall over a specific time date or location. They can also buy a premium with a specific dollar amount of coverage.