Arbol Insurance Services | Low Temperature solutions

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

Global (Outside of USA)

Globally*

OFAC sanctions prohibit or restrict Arbol Insurance Services from engaging in activity that involves sanctioned persons or comprehensively sanctioned countries and regions.

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

26° 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

$200,000

time period

1/1 - 3/31

Coverage trigger

31° Fahrenheit

data source

National Hurricane Center

Payout profile

Low Temperature

How it works

An example structure

Next steps