Low Snow Insurance: A Lifeline for Winter-dependent Businesses

June 22, 2023
A snowy forest. Photo credit: David Bartus.A snowy forest. Photo credit: David Bartus.

Low Snow Insurance: A Lifeline for Winter-dependent Businesses

Our warming planet has brought about dramatic changes in snowfall patterns that are undermining businesses that rely on consistent winter conditions. According to a Climate Central report, "Shifting Snow in the Warming U.S.," winter is the fastest warming season for most of the U.S., and the number of days with temperatures below 32°F is expected to continue to decline. This trend, coupled with inconsistent regional snow trends poses stiff challenges for winter-dependent businesses, making Arbol's low snow insurance a useful coverage option.

Global Average Surface Temperature; Source:

The Changing Landscape of Snowfall

The Climate Central analysis highlights that from 1970 to 2019, snowfall decreased in the spring and fall across most parts of the U.S. In some regions, winter exhibited mixed patterns with more snowfall in the northern regions and less in the southern parts. These shifts have had far-reaching impacts on ecosystems, economies, and local cultures that heavily rely on consistent snowfall.

For instance, in the Northeast – an integral part of the multi-billion dollar winter recreation industry – there's been an increase in the proportion of winter precipitation falling as rain rather than snow. In the Great Lakes Region, despite more evaporation leading to an increase in lake effect snow, future projections suggest a shortened lake effect snow season. In the Northern Great Plains, warming has led to shorter snow seasons and a decline in snowpack water storage, impacting local economies and recreational industries that depend on snow-fed streamflows.

In the face of these changes, businesses that thrive on snow accumulation, such as snow removal companies, ski resorts, municipalities with snow removal contracts, and those in regions with snowfall-contingent seasonal tourism, must adapt and develop strategies to curb financial losses. One such strategy is low snow insurance.

Arbol Insurance Services' Low Snow Insurance: A Customized Safety Net

Arbol Insurance Services' innovative low snowfall insurance provides a financial buffer for businesses hampered by unexpected snowfall deficits. This tailored parametric coverage can be customized with location(s), the desired limit of liability, coverage trigger, and risk period, allowing businesses to maintain profitability and continue operations despite snowfall deficits.

Here's how it works: Using ERA5 snowfall data, an insured becomes eligible for a loss payment if cumulative snowfall falls below the pre-selected trigger. Take the example of a mountain resort that relies on revenue from the ski season. The slopes require a minimum amount of snow to be usable. If the accumulated snowfall is below that threshold, the resort can face significant revenue losses. With Arbol Insurance Services low snowfall insurance, the resort will receive a payout if the snowfall doesn't meet the pre-selected threshold, ensuring continuity of business operations.

The effects of climate change are altering the face of winter as we know it, with significant consequences for winter-dependent businesses. Arbol Insurance Services' low snow insurance is a smart, forward-looking solution, offering financial stability in the face of an unpredictable climate future. With it, businesses can face the changing winters with confidence, knowing they're prepared for whatever snowfall trends lie ahead.

To learn more, please contact us here.


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