08/06/2024 | Press release | Archived content
Tuesday 06 August 2024 - Thought Leadership
Our income stabilization insurance provides financial stability to businesses whose sales revenues are jeopardized due to untimely weather. This coverage allows the insured to receive an agreed-upon payout per day or per season to offset the shortfall. Some examples are:
With income stabilization insurance, businesses that rely on the weather don't need to fret when it's not in their favor.
Boat rentals:
Going out in rough waters in the middle of a storm is not an experience many people would want to endure, let alone pay for. Weather can get temperamental and easily impact the current and the surrounding area. From ruined docks to broken boats, the list could go on, leaving boat rental companies vulnerable to high expenses and low attendance. Income stabilization coverage can help cover the loss of income and protect the business from increased expenses, lowering the financial risk brought on by unfavorable weather conditions.
Outdoor sports rental shops:
Summer is a very active time for those who enjoy partaking in outdoor sports. From pickleball tournaments to bike races and recreational sports leagues, all of which would have to be cancelled and/or postponed if the weather took a turn for the worse. With loss of sales revenue coming in from renting out the space and equipment for these activities to prosper, these businesses bottom line can take a hit. Income stabilization insurance keeps profits steady and secure when the weather doesn't want to comply. Once the threshold for the policy has been met, the insurance kicks in, paying the business an agreed-upon payout per day or per season to offset the shortfall.
Pay-for-play golf:
Rainouts that cause washouts and floods on the course can severely impact a pay-for-play golf course, especially courses in areas that are open for only a season or two. A snowy spring and a rain-filled summer can restrict golf courses' time span to reach their financial goals. By removing the risk associated with having a weather dependent business through income stabilization insurance, businesses like pay-for-play golf can mitigate risk and continue to stay afloat while they wait for the showers to pass.
Outdoor restaurants:
For some restaurants, summer is the busiest and most profitable season. Outdoor seating, roof deck bars, and pop-ups can attract a large crowd and bring in a fruitful amount of sales revenue. However, a particularly rainy or cold summer can quickly dismantle even the strongest sales tactics to generate business. Consider income stabilization insurance as a rainy-day fund, a way to keep your business going even when hit by financial loss.
Water parks/amusement parks:
Summer brings summer break and with it, waves of people ready to indulge in summer fun. The success of outdoor entertainment like amusement and water parks relies on good weather over the summer as most, if not all, of their revenue is made during the short period of time they are operating. Bad weather can impact the number of attendees that come to the parks and diminish the amount of profit coming into the business. Income stabilization insurance can aid businesses by recouping the loss revenue needed to keep the parks open.
Why Income Stabilization Insurance?
Regardless of how much preparation is done to ensure a financially sound season, weather is one of the most unexpected and uncontrollable obstacles. The damage it can cause to a business, both physically and financially, can wipe out a business. Once hit with temperamental weather a domino effect begins, lack of attendance leads to a decrease in sales, exposing businesses to more financial risk and can ultimately lead to a closed down-business.
Investing in income stabilization insurance is the best way to protect a business from this unstoppable force. When there's an option of having a financial shield that can protect profit margins and safeguard a business from financial instability, who wouldn't want to take that help?
Contact:
Robin Lang
Vice President, Contingency Underwriting
(781) 994-6025
[email protected]