Specialist insurer Beazley has introduced a policy that protects seasonal businesses against previously uninsured weather events – and helps them retain customer loyalty.

Weather Guard can be used to indemnify weather-triggered sales promotions and prize giveaways, as well as stabilising revenue and managing unplanned costs.

Contingency Underwriter Katie O’Neill says the policy will appeal to businesses such as hotels and resorts that rely on a “brief window” for their sales.

She says an example of how the policy might work is when a guest who experiences consistently poor weather receives free accommodation vouchers for future stays.

“In this way, our insurance product turns an unfortunate circumstance that is largely beyond the insured’s control…into an opportunity for the hotel to build a loyal customer base and promote their brand,” Ms O’Neill said.

Beazley has access to 5500 weather stations, enabling underwriters to assess weather risks on any date, so they can tailor cover.

Weather Guard clients can choose which perils will be covered – including rain, snow or temperature – plus trigger levels and duration.

Beazley Australia’s Head of Contingency Damian Kerin says organisations that incur additional costs in bad weather are another target.

“A beachside cafe or ice cream shop may experience significant losses if there is a cold front in the middle of summer,” he said. “Similarly, schools, hospitals and care facilities may experience higher energy costs after longer-than-usual periods of hot weather.

“These organisations can use a Weather Guard policy to protect their profits against these additional costs.”