Income Stabilisation
Income Stabilisation insurance is simplified business interruption cover. It can be tied solely to those critical periods in a year that drive revenue. In the event of abnormal weather conditions occurring at these times, we would pay an agreed upon amount per day, week, month, or year!
Recommended for
- ‣ Restaurants
- ‣ Car washes
- ‣ Cinemas
- ‣ Theme parks
- ‣ Ice cream sellers
- ‣ Pay for play golf courses
Scenario 1
The risk
The Seafood Supper Shack is a thriving beachside restaurant in Melbourne, which opens for the summer season of December, January and February, but only on a Saturday and Sunday. The owner Sally doesn’t have another job, so relies on these three months for her annual income. Sally knows that if it rains on more than three of those 24 weekend days, her profits will sink.
The solution
Sally takes out income stabilisation insurance to cover her profits of AUD 10,000 per day, for each day it rains over her three day threshold. Based on her insurance budget she works with us to define the trigger as an incremental accumulation of rain of 1.3cm or more between 11:00 and 23:00 per weekend day between December and March
Claim
Of the 24 insured weekend days, four of them have an accumulated rainfall of 1.3cm or more. The policy pays out AUD 10,000 to cover her profits or of the 24 insured weekend days, six of them have an accumulated rainfall of 1.3cm or more. The policy pays out AUD 30,000 to cover her profits.
No claim
Of the 24 insured weekend days, three of them have an accumulated rainfall of 1.3cm or more. Of the 24 insured weekend days, two of them have an accumulated rainfall of 1.3cm or more.
Scenario 2
The risk
Loop-the-Loop Attractions Inc is a theme park. 40% of the Client’s revenue is generated on just five Public Holidays – these key days make or break the Client’s annual results. Rain occurring in the morning of these critical days means customers will not visit the theme park.
The solution
Weatherproof pays the Client if there is more than 0.50cm of rainfall and/or the average temperature is less than 10°C between 07:00 and 12:00 on the five Public Holidays.
Claim
Either one or both of the perils are triggered e.g. 1.3cm of rain falls between 07:00 and 12:00 on one of the insured days and/or the average temperature is under 10°C. The policy pays out for each one of the five days upon which this trigger occurred.
No claim
Neither peril is triggered e.g. 1.2cm of rain falls between 07:00 and 12:00 on one of the insured days and/or the average temperature is over 10°C.