Insurance - Drought protection?

[tw1012]

I just discovered that my insurance does not cover interruption of business due to drought.

Do any insurance companies provide coverage in the event that the city shuts down car washes due to drought?

 

[mjc3333]

Some will cover business income due to utility interruption from a caused peril to the utility under the terms of the insurance policy.

Say, fire damages a pumping station for water that supplies the wash, the insurance would cover the loss.

To do this you will need Utility Services Direct Damage on the policy.

There has to be direct physical damage to the utility that would create a loss of service.

The insurance company will call the drought an "Act of GOD" or "Act of Nature"

 

[Washmee]

Try these guys.

http://www.usweatherinsurance.com/?gclid=CPbkpfSb4bQCFelFMgodPiIA0g

 

[Dean Taylor]

In many areas, if you have a water reclaim system, they will allow you to stay open during droughts. Might be worth looking into.

 

[mjc3333]

Try these guys.

http://www.usweatherinsurance.com/?gclid=CPbkpfSb4bQCFelFMgodPiIA0g

They will only cover a specific event such as how much rain will fall in a specific amount of time. They will not cover water restrictions because of drought conditions. This type of insurance is more for a contest if it rains on such and such day or if it snows on Christmas we will give away a prize. If that happens and you bought a policy you would be compensated for the cost of the prize.

 

[Washmee]

They will only cover a specific event such as how much rain will fall in a specific amount of time. They will not cover water restrictions because of drought conditions. This type of insurance is more for a contest if it rains on such and such day or if it snows on Christmas we will give away a prize. If that happens and you bought a policy you would be compensated for the cost of the prize.

Are you sure?

Weather mostly affects companies whose main product is outdoors like golf courses, baseball teams, and ski resorts. These and many other types of businesses depend on certain weather conditions during peak seasons that drive sales and increase revenue. For example, many restaurants rely on a majority of their sales coming in on Friday and Saturday nights. If during the month of January it snows three of those peak nights the restaurant will not make their predicted sales for the month. US Weather Insurance will insure that anticipated sales number to make sure the company is not at a loss due to the bad weather.
Income Stabilization
How Does It Work:

Contact US Weather Insurance and provide us with the following:
Date, time period in which you are requesting coverage.
Location (zip code) of the business you would like covered.
Amount of coverage that you would like to be reimbursed for if bad weather happens.
Type of weather you would like to insure against.
Receive a quote from US Weather Insurance that usually ranges from 1%-4% of the amount of coverage.
Bind the coverage by filling out a simple 1 page application and submit payment for the premium due.
Sit back and relax because you’re covered if bad weather impacts your business!
Benefits of Income Stabilization Insurance:

Income stabilization insurance can be utilized by any type of business.

 

[mjc3333]

Yes. I was looking into this same type of coverage and contacted them. The said they do not cover water restrictions due to droughts

 

[mjc3333]

Again you would have yo predict when some event would occur. You would have to predict when exactly the drought/ water restrictions would occur well before.