Excess Precipitation

Weather heavy rainfall with confidence using our excess precipitation parametric insurance solution

Things you can do

Overview

Excess precipitation can pose serious challenges to businesses. Arbol's parametric coverage for excess precipitation offers a customized solution to shield businesses from revenue losses associated with heavy rainfall.

Available

Contiguous U.S.

Who can benefit

Agricultural businesses, such as crop farms and orchards
Construction and infrastructure projects
Flood-prone properties
Transportation and logistics companies
Outdoor event organizers

How it works

A coverage trigger can be set based on a business’s needs and risk exposure using CPC or PRISM precipitation data. If cumulative rainfall surpasses the threshold during the policy period, the insured automatically becomes eligible for a loss payment, helping to cover costs and maintain profitability despite challenges from excess precipitation.

An example structure

For informational purposes only. Actual coverage may vary by carrier.

Context

Grain processors of Des Moines generate revenue when farmers store their products in their grain silos. If farmers have reduced yield due to too much rainfall, the grain processor receives less grain from farmers and incurs costs associated with the reduction in revenue.

Contract structure

Client

Grain elevator

location

Des Moines, Iowa

peril

High rainfall

full limit recovery

7 inches

Payouts Based on

Cumulative precipitation

limit

$500,000

payout table example

x% for Cat 3 within 30 miles

y% for Cat 4 within 20 miles

z% for Cat 5 within 10 miles

Daily threshold

limit paid at

Payment per inch

$250,000

time period

6/1 - 9/30

Coverage trigger

5 inches

data source

National Hurricane Center

Payout profile

Next steps

If you're an agent, you can request a premium indication

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If you have a question?

© 2023 Arbol Inc. All rights reserved.

Climate Risk Insurance Solutions LLC, doing business as Arbol Insurance Services, and operating in New York under the name Arbol Insurance Services LLC (“Arbol” or “AIS”) is licensed as a property casualty and surplus lines insurance agency in all states in which insurance is offered and such licenses are necessary to offer this insurance. All descriptions or highlights of the insurance being provided are for general information purposes only, do not address state-specific notice or other requirements, and do not amend, alter, or modify the actual terms or conditions of an insurance policy. Availability and qualification for coverage, terms, rates and discounts may vary by jurisdiction. Our state license numbers can be found here. AIS does not solicit from the public. Any carrier ratings contained herein are as of 7.18.23. A.M. Best ratings are under continual review and subject to change. Current ratings can be found at www.ambest.com.