Overview

Low wind conditions can hinder wind-dependent businesses, causing reduced output and revenue loss. Arbol offers low wind protection, a tailored parametric insurance solution that safeguards businesses against revenue losses when wind speeds drop below a chosen trigger during the policy period.

Available

All 50 U.S. states

Who can benefit
  • Wind farm operators
  • Wind turbine manufacturers
  • Energy storage facilities
  • Businesses with contractual wind power obligations

How it works

Low wind protection coverage can be customized based on location(s), limit of liability, coverage trigger, policy period, and data source. For example, a wind farm operator’s policy may provide for a payout if the average wind speed during the policy period is below 30 miles per hour. If the average wind speed is below the threshold, the insured automatically qualifies for a loss payment, offsetting costs related to revenue loss or low-wind penalties. This financial protection helps businesses stay profitable and operational despite low wind challenges.

An example structure

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

A wind power generator is at risk of extremely low power generation due to an abnormal drop in wind speed over a prolonged period of time. This time period of low power generation can cause significant drops in revenue for the business.

Contract structure
Client
Wind farm
location
Springfield, Illinois
peril
Wind Gust
full limit recovery
Payouts Based on
Maximum Wind Speed
limit
$100,000
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
41mph
payment per mph
$25,000
time period
6/1 - 8/31
Coverage trigger
45mph
data source
National Hurricane Center
Payout profile

Next steps

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