WEATHER COVERAGE. Weather insurance protects the insured sponsor of an outside event or a manufacturer or seller of a product that is dependent on or subject to weather activity. It covers financial loss such as reduced revenue, increased expenses or inventory loss, as well as increased product promotion expense. It responds to the need for financial protection of legitimate activities that are planned in advance, but are vulnerable to failure due to weather events that are beyond the insured's control.
Related PF&M Article: Weather Insurance