Temperature

Protect your business from temperature extremes.

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Customizable, index-linked solutions for managing financial risks from both high and low-temperature events—available as insurance or derivative structures tailored to your clients’ operational needs.

Temperature fluctuations—extreme heat or unexpected cold snaps—can severely impact business operations. Arbol’s temperature-linked parametric products offer location-specific protection based on validated climate data, eliminating subjective damage assessments.

Used by 5,000+ Agency Partners

Backed by ERA5, PRISM, + CPC Datasets

When temperatures spike or plummet, revenue takes the hit

Businesses across agriculture, retail, hospitality, and energy sectors face significant financial threats from temperature extremes.

Traditional insurance rarely accounts accurately for temperature-driven losses.

Arbol provides objective, data-driven parametric coverage solutions, triggering automatic payouts when predefined temperature thresholds are met.

How Parametric Coverage Works

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Choose Risk

High or Low Temperature

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Define Location + Risk Period

Select county, grid, or field and timeframe

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Coverage Initiated

Arbol monitors data

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Payouts Automated

If the threshold is met, payout is calculated and delivered—automatically

Payout Amount
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Probability
Temperature
Historical Payout
Coverage available as insurance or derivatives based on jurisdiction and client eligibility needs.

Temperature Coverage
Use Cases

CA Vineyard
Risk

Low Snowfall

Trigger

<36°F min daily temperature

Structure

Insurance

Use Case

Safeguard grape harvest from cold snaps

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GA Open Air Market
Risk

Excess Snowfall Critical Days

Trigger

>100°F max daily temperature

Structure

Derivative

Use Case

Coverage against heat-driven closures

TX Utility Company
Risk

Excess Snowfall Accumulation

Trigger

High/low combined triggers

Structure

Insurance

Use Case

Manage volatility in energy demand

Client
Risk
Trigger
Structure
Use Case
CA Vineyard

Low Temperature

<36°F min daily temperature

Insurance

Safeguard grape harvest from cold snaps

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GA Open Air Market

High Temperature

>100°F max daily temperature

Derivative

Coverage against heat-driven closures

TX Utility Company

Custom Blend

High/low combined triggers

Insurance

Manage volatility in energy demand

Temperature products may be structured as insurance or derivatives depending on jurisdiction, licensing, and client-specific requirements.

Download Temperature Factsheet

Enter your email to download our Temperature Factsheet.

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Why Clients + Agents Use Arbol

Independent Data

Reliable third-party temperature data (PRISM datasets)

Custom Triggers

Tailored triggers specific to location, temperature extremes, and risk periods

Legally Compliant

Easy-to-use quoting and compliance tools designed specifically for brokers

Flexibility

Product can be structured as insurance or derivative, and as stand-alone or supplemental to traditional insurance

FAQ

Explore common questions about temperature coverage.

How is temperature tracked and validated?

Arbol leverages highly reliable, independent third-party datasets—primarily the PRISM climate dataset—to track daily temperature extremes accurately and transparently. All triggers and payouts are validated against this trusted data, ensuring an objective and dispute-free claims process.

Can I combine temperature coverage with other weather perils?

Yes. Arbol’s customizable parametric solutions allow you to combine temperature coverage with other weather perils, such as rainfall, wind, or snow, within a single comprehensive contract. This multi-trigger option is ideal for businesses facing multiple climate-related risks.

Do I need a special license to offer temperature-based products?

Yes. Because Arbol’s products can be structured either as insurance or as derivatives, the licensing requirements vary by jurisdiction and product type. Typically, insurance products require an insurance broker or agent license, while derivative products have their own regulatory framework. Arbol’s team will guide you on licensing specifics for your jurisdiction and product selection.

What's the difference between insurance vs. derivative temperature products?

Insurance: Offers financial protection against temperature extremes, regulated under insurance law, and typically involves a licensed insurance agent or broker. It is suitable for end-clients seeking straightforward financial protection.

Derivatives:
Financial contracts linked directly to temperature data, regulated by financial markets. Derivatives are often used by sophisticated corporate clients or brokers managing financial exposure through hedging strategies.

Is coverage available for temperature-sensitive crops not covered by federal programs?

Yes, Arbol’s temperature coverage is available for a broad range of temperature-sensitive crops, including specialty and perennial crops that may not be adequately protected under federal crop insurance programs. Examples include vineyards, orchards, and horticultural operations vulnerable to frost or heat stress.

Can I layer temperature triggers with other weather-based triggers?

Absolutely. Layering temperature triggers with other weather-based triggers like rainfall, freeze events, or wind speed is not only possible but encouraged for comprehensive risk management. This strategy allows businesses to tailor protection to their unique operational risks.

Start a temperature risk assessment with Arbol today.

Arbol works through licensed agents and brokers. Product type availability depends on jurisdiction, eligibility, and specific use case.

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Temperature Insights