If your revenue and/or your costs are strongly affected by weather, it might be a good idea to hedge the weather risk with a weather insurance. Large businesses have taken advantage of weather insurance for centuries, while small and medium businesses are now catching up.
These industries are strongly affected by weather:
There are many different types of weather insurance out there, because it was created for large companies, with individual contracts that cover specific weather risks.
For small and medium companies, the most common types are Rain, Temperature and Snow insurance. WETTERHELD offers all three of these types:
WETTERHELD weather insurance is available for customers who act as bussiness entities according to § 14 BGB. Usually, these are all businesses in Germany (single proprietors and legal entities). The second condition is that their business is affected by bad weather (rain, temperature or snow).
In the future, we might make the insurance available to customers that require to insure a private event like a wedding or a party, or their vacation (as long as it's in Germany), but for now, it's for business purposes only.
WETTERHELD weather insurance is also available to businesscustomers outside of Germany as long as their weather risk lies in Germany.
Our WETTERHELD insurance solution will be ready during the next months. We will announce the starting date to all our pilot customers who have registered for the limited early access.
This is how you choose the right weather insurance:
Understanding the weather risk
If your business has been established a long time ago, you will know the weather risk better than anybody else. You know weather conditions that make your customers stay away, damage your plants or disrupt your processes.
If your business has been founded recently, the weather risk is not yet known from the past.
In cooperation with business owners from different industries, we have developed recommendations that can help you to choose the right weather insurance for your business:
Choosing the right parameters
WETTERHELD wants to help you to choose the right amount of insurance for your weather risk. We do not want to insure you against "normal" weather. Any business will survive a day of rain or two. To choose the right parameters, change the values of the parameters and observe how the price changes. Try to find the best balance between the amount of risk that you insure, the amount of risk that stays with your business, and the price that you pay for the risk transfer - just like any risk manager in a large company would do.
For each of the WETTERHELD weather insurance parameters, we have produced a guide that will help you to find this balance:
WETTERHELD made sure that your insurance payout is guaranteed by financially strong partners, that are regulated and monitored by the German BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht):
We have developed an amazing, cutting-edge mathematical risk model which allows to give you a fair insurance price for rain, temperature and snow insurance for every day of the year and every place in Germany.
The price is always fair because it is calculated based on the real weather risk, legally required risk buffers and taxes. The price includes a sales commission that is much lower compared to most other insurers, because our business is digital, and we don't have a huge sales team or a large bureaucratic back office.
This depends on the type of your restaurant.
Restaurants with outside seating - insure against rain
If you have a significant number of outside seats at your restaurant, you will count on guests who enjoy their meal outside in summer. The most obvious risk to restaurants that offer outside seating is rain.
Restaurants in touristic areas - insure against rain
If your restaurant is in a touristic area, you might notice that less tourists will frequent your restaurant on rainy days. This is either because they choose not to visit the touristic area at all, or because they choose to eat at their hotel restaurant or other options closer to their accommodation instead.
Restaurants in ski resorts - insure against lack of snow
If your restaurant is in a ski resort, you will know how devastating lack of snow can be for business. No snow, no skiing, no guests, it's that simple.
We want to help you find the optimal insurance coverage for your business, so you're neither over-insured nor under-insured. And this is why we'd like to make clear: In any case, your insurance should cover only days that are most important for your revenue and your profit, and you really should cover these days. Most restaurant owners know exactly which days bring the most revenue.
Days of week:
For most restaurants, Saturday and Sunday are the most important days of week. Others earn their money on Mondays to Fridays. Some restaurants are equally booked on all days of week.
Many restaurants are fully booked on Easter and other holidays - except during bad weather. These special, profitable days should definitely be covered by a weather insurance.
Some restaurants organize summer events like barbecues. If these events are dependent on good weather, we recommend to cover these days with your weather insurance.
The number one enemy of any Volksfest is rain. You know those rainy days when all business owners are nervously standing around, looking at the sky, hoping that it stops raining. We truly wish you and your business as little of these days as possible, especially if it's a Friday, Saturday or Sunday. But sometimes, bad luck prevails. If you protect your Volksfest business against rain, you will feel much more relaxed, focusing on your business instead of looking at the sky.
We want to help you find the optimal insurance coverage for your business, so you're neither over-insured nor under-insured. And this is why we'd like to make clear: In any case, your insurance should cover only days that are most important for your revenue and your profit, and you really should cover these days. Most Volksfest business owner know exactly which days bring the most revenue.
Days of week:
For most Volksfests, Friday, Saturday and Sunday are the most important days of week.
Volksfests have a lot of visitors on holiday like Easter - except during bad weather. These special, profitable days should definitely be covered by a weather insurance.
Some Volksfests have a tradition of attracting many visitors on their opening day or closing day. If these days are important to your bottom line, you should include them in the weather insurance coverage.