Parametric weather insurance covers construction delays

Parametric weather insurance for contractors and project owners in North America is available from Zurich North America to cover construction delays regardless of whether there is physical loss.

Zurich Construction Weather Parametric Insurance, which differs from traditional builders risk insurance that pays only when physical damage occurs, covers claims triggered by predetermined weather events such as extreme rain, wind, temperatures or other conditions that could cause costly delays.

The coverage complements Zurich North America’s newly enhanced suite of master builders risk and project builders risk policy forms, said Kelly Kinzer, Head of Construction Property for Zurich North America. The forms “include flexible reporting options, as well as several new coverage enhancements attuned to today’s evolving marketplace,” she said.

Under the coverage, perils, limits, deductibles and other features can be tailored to the needs of the customer. The threshold options for each peril are based on historical weather data. Coverage can be purchased for one or more weather perils and its duration can be tailored around the peak season for the risks. It can be pegged to milestones in the construction schedule.

Because payment is based on objective weather data, there is little need to investigate a loss. Coverage responds as long as the trigger event occurs, the project is impacted within the agreed-upon dates and the deductible has been met.

“The Zurich North America construction team is committed to putting our extensive knowledge, experience and financial strength to work for contractors and owners,” Ms. Kinzer said.

More information is available on Zurich’s weather parametric insurance for the construction industry.