An insurance policy covering loss of income or profits caused by rain or other weather conditions. The main demand comes from the organizers of outdoor summer events, who could suffer financially if rain caused the event to be curtailed or abandoned. For events in which any profits would be uncertain, e.g. a summer fete, the policy specifies that claims are to be based on the number of millimetres of rain that fall in an agreed period at an agreed weather station near to the site of the event. If the amount of lost revenue can be easily calculated from ticket sales at an event, such as a cricket test match or tennis match, a policy paying for lost profit can be arranged.
Subjects: Business and Management.