BeazleyWeather Guard

Don’t get left high and dry.

Keep your business buoyantwhatever the weather.

Millions of U.S. businesses – from air conditioning suppliers to zoos – are vulnerable to demand shortfalls or increased costs due to adverse weather. Others may be able to create intriguing marketing promotions with payouts tied to weather triggers. With access to more than 40 years of data from 5,500 weather stations, Beazley can craft solutions that protect businesses against the downside (and maximize the upside) of an increasingly volatile climate.

Insurance has covered weather perils for centuries. But Weather Guard embodies a radically new concept, covering weather-related perils that have historically not been offered.

How seasonal is your business?The most obvious beneficiaries of Weather Guard’s unique coverage are businesses that are highly seasonal, relying on a brief ‘window’ for the bulk of their sales. Such businesses – some examples of which are given on the chart (right) – are highly vulnerable to adverse weather during their peak season. Companies of this kind can select the period and weather peril for which they require cover and, if poor weather dents demand by more than a pre-agreed amount, Beazley’s underwriters will reimburse the loss of business they have suffered.

Marketing promotions and loyalty programs The weather can also serve as a trigger for marketing promotions or loyalty programs. For example a hotel could reimburse its guests if the weather during their stay has been consistently dreadful. Better still, the hotel could give the guests vouchers for another stay, at a time of their choosing, at the same hotel or another in the chain. Alternatively, a company could offer customers money back on a purchase if the weather during a set period exceeds a pre-agreed benchmark – a “sizzling” Valentine’s Day for a florist or jeweler for instance. The opportunities are endless.

“All that snow had to go”The third category of organizations supported by Weather Guard are those that incur additional – and potentially heavy – costs as a result of unseasonably bad weather. An obvious example might be municipalities that need to rent additional equipment and face higher than expected clean up costs after a more than usual amount of snow and/or number of snow storms. Weather Guard can protect them against these additional costs provided that the number of snow storms and/or snowfall exceeded a certain pre-agreed level.

Tailored coverage and responsive claims service to meet your needsWeather Guard is not “one size fits all” insurance. In each case, Beazley’s underwriters work closely with you and your broker to craft a policy that covers your individual needs. That way you get the protection you need and don’t overpay for unnecessary coverage. To take one example, if you have a peak two-week period for sales – for example in the run up to a major holiday – we can provide weather-related income stabilization coverage for that two-week period. There is no need for you to buy a more expensive policy running for a month or more.

Of course an insurance policy is not worth the paper it’s printed on unless it is backed by prompt, reliable claims service. Ours is. We are one of the largest and most experienced insurers of weather-related risks – principally event cancellation – in the global market, insuring five out of the top six global event organizers.

In 2012, we paid substantial claims arising from superstorm Sandy. In particular, we led the coverage of the New York Marathon, cancelled in the aftermath of the storm with less than 48 hours left to the race start. The resulting claim was described by the broker, an event cancellation specialist, as “by far the most complicated” he had witnessed in 22 years. It was settled within six weeks and in 2013 Beazley once again insured the New York Marathon, which took place without incident.

To learn more about how Weather Guard can support your business, contact Beazley underwriter Christian Phillips in our Philadelphia office on 215 446 8426 or at christian.phillips@beazley.com, or alternatively Alexandra Sharps on 215 446 8464 or at alexandra.sharps@beazley.com

BeazleyWeather Guard

beazley.com/contingency

Your business Your riskPromotion Income stabilization Cost containment

Marketing campaigns linked to weather perils can be insured through Weather

Guard, offering consumers their money back should a predetermined weather

trigger occur on the promotional date.

Many companies are vulnerable to demand shortfalls in the event

of unfavourable weather, particularly when their

business is highly seasonal and most sales take place

during a short window of opportunity.

Weather Guard can help.

Weather Guard can cover costs and expenses – for

example for snow clearance – that rise beyond their

budgeted amount due to unseasonably bad weather.

Air conditioning suppliers BBQ gas suppliers BBQ manufacturers Car dealers/franchises Carnivals Casinos Coffee shops Construction companies Flower stores Furniture stores Garden centers Gas stations Gift wrapping/card stores Golf courses Golf merchandise manufacturers Halloween stores Holiday home lessors Home appliance stores Horse race tracks Hotels Ice cream sellers Independent retail stores Jewelry stores Landscape firms Leisure centers Movie theaters Museums Restaurants Snow blower manufacturers Snow removal firms Spas Theme parks

Tire companies Townships Tour bus companies Water parks Zoos

CBPC

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13The descriptions contained in this communication are for preliminary informational purposes only. The product is underwritten by Beazley syndicates at Lloyd’s and is available in the US on a surplus lines basis through licensed surplus lines brokers and is also available on an admitted basis through a specialist partner.

The publication and delivery of the information contained herein is not intended as a solicitation for the purchase of insurance on any US risk. Coverages will vary depending on individual country law requirements and may be unavailable in some countries. The exact coverage afforded by the products described herein is subject to and governed by the terms and conditions of each policy issued. Some coverages are made available through Beazley Pte Limited and Beazley USA Services, Inc., which are service companies that are part of the Beazley Group and have authority to enter into contracts of insurance on behalf of the Lloyd’s underwriting members of Lloyd’s syndicates 623 and 2623 managed by Beazley Furlonge Limited. Beazley Furlonge Limited is authorised and regulated by the UK Financial Services Authority (ref 204896) in its capacity as insurer. Beazley Pte Limited does not transact business in the US. Beazley USA Services, Inc. is licensed and regulated by insurance regulatory authorities in the respective states of the US and transacts business in the State of California as Beazley Insurance Services (License#: 0G55497).

Beazley GroupTwo Liberty Place50 S. 16th Street, Suite 2700PhiladelphiaPA 19102USA

T +1 (215) 446 8410F +1 (215) 446 8469

beazley.com/contingency