Zurich North America offers Construction Weather Parametric Insurance does not require physical loss or damage in order to claim weather-related losses.
Parametric insurance sets predetermined parameters and payments—agreed upon by the insurer and the customer during the application process—for risks that can be objectively measured and verified by a respected third-party authority.
Claim payment is based on predetermined weather events occurring in the project’s location. Coverage kicks in when a predetermined trigger is met by an agreed-upon threshold of rain, wind, or temperature. Any of these perils can cause project delays, resulting in severe financial losses, even when the project doesn’t sustain physical damage.
The coverage is customizable to contractors or project owners. An owner, for example, could incur heavy revenue losses from operating profits that aren’t being realized. A contractor who misses project deadlines could suffer penalties, including liquidated damages, as well as incur additional expenses.
“We are proud to offer this solution as a complement to our newly enhanced suite of Master Builders Risk and Project Builders Risk policy forms, which include flexible reporting options, as well as several new coverage enhancements attuned to today’s evolving marketplace,” said Kelly Kinzer, head of construction property for Zurich North America, in a prepared statement.
With Zurich Construction Weather Parametric Insurance, the perils, thresholds, limit, deductible and coverage duration can be individually tailored to meet the needs of the buyer. The threshold options for each peril are based on historical weather data at the location of the project. Parametric customers can purchase coverage for one or more weather perils, and coverage duration can be tailored to peak season for the weather risk and pegged to milestones in the construction schedule.
Source: Zurich North America
