One of the most unpredictable factors that businesses must navigate is weather-related uncertainty. Recent data from the Environmental Protection Agency (EPA) indicates an alarming trend: rain falling not in gentle, steady showers but in intense, single-day events that can devastate communities and disrupt businesses. The data reveals an increase in extreme one-day precipitation events, especially in the contiguous 48 states – nine of the top 10 years for these intense single-day events have occurred since 1996.
In an article entitled, “Climate Change Indicators: Heavy Precipitation” the EPA highlights the growing issue of "heavy precipitation" — those instances when rainfall or snowfall drastically exceeds the norm. Although the exact definition of heavy precipitation varies depending on location and season, its implications are significant. Apart from the immediate dangers of soil erosion, crop damage, and increased flood risk, heavy precipitation can result in long-term effects on public health and water quality.
That said, it’s important to note that an increase in heavy precipitation doesn't necessarily translate into a larger total amount of precipitation. Instead, it indicates that when it does rain, it pours, often all at once. This, combined with potential changes in the intervals between these precipitation events, can contribute to changes in overall precipitation totals.
The implications for businesses, particularly those in sectors heavily reliant on stable weather conditions, are considerable. When relentless downpours surpass the expected or prepared-for levels, they can severely disrupt operations and cause substantial financial losses, e.g.:
Recognizing this challenge, Arbol Insurance Services has developed an innovative product: excess precipitation coverage.
Arbol Insurance Services’ excess rainfall coverage is a tailored solution designed to offer financial protection against the risks posed by heavy rainfall. The policy is triggered when accumulated rainfall during the coverage period surpasses a predetermined threshold, reflecting the specific needs and risk exposures of the business. Utilizing comprehensive CPC or PRISM precipitation data, this parametric coverage ensures a more streamlined and transparent insurance process.
What sets Arbol Insurance Services' rainfall coverage apart is its inherent simplicity. Should rainfall levels exceed the set trigger, the insured is automatically eligible for a loss payment. This eliminates the need for a lengthy and often complicated claims assessment process, providing timely financial aid to businesses when they need it most.
To learn more about Arbol Insurance Services’ forward -thinking coverage solutions, please contact us here.