Low Temperature

Keep your business flourishing despite cold snaps with our low-temperature parametric insurance solution

Things you can do

Overview

Low temperatures can impact businesses, causing reduced revenue and increased costs. Arbol's parametric insurance offers customized protection against revenue losses due to low temperatures.

Available

Contiguous U.S.

Who can benefit

Agriculture and horticulture businesses vulnerable to frost damage
Commercial property owners at risk of cold-related structural damage
Retail and hospitality businesses affected by reduced foot traffic during cold spells
Transportation and logistics companies facing delays due to icy conditions
Energy providers experiencing increased demand and supply challenges during cold periods

How it works

Using PRISM daily minimum temperature data, our coverage makes insureds eligible for loss payments if the lowest daily temperature during the policy period falls below the pre-selected trigger, helping manage financial risks associated with low temperatures.

An example structure

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

Context

Lauren is the CEO of a wine production operation in California with many acres of vineyards. Last year her company lost nearly 50% of their revenue when an extreme cold snap caused her vulnerable grapes to freeze before harvest.

Contract structure

Client

Vineyard

location

Napa Valley, California

peril

Low temperature

full limit recovery

28° Fahrenheit

Payouts Based on

Minimum daily temperature

limit

$1,000,000

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 degree

$125,000

time period

3/1 - 6/30

Coverage trigger

36° Fahrenheit

data source

National Hurricane Center

Payout profile

Next steps

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

Get started

If you have a question?

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.