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.
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.
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.
