General Questions
- Is WeatherBill coverage a type of insurance?
- Who can purchase WeatherBill coverage?
- How much does WeatherBill coverage cost?
- What types of weather can you protect against?
- Where is the weather measured?
- How early in advance of my coverage start date can I purchase coverage?
- What types of businesses do you work with?
- How many clients do you have?
- How do I know you can pay me?
- I’ve never had to purchase this type of coverage before. Why should I start now?
- Is this gambling?
- I have more questions. How do I contact you?
Is WeatherBill coverage a type of insurance?
No. WeatherBill is not an insurance company. Our coverage is similar to insurance, but it is different in some key ways. There’s no claims process and no proof of loss required. WeatherBill coverage pays out based solely on weather measurements. WeatherBill automates the payout so that if bad weather happens a check will be mailed within five business days after your coverage period has ended. Or, if you prefer, your online WeatherBill account will be credited the amount of the payout.Who can purchase WeatherBill coverage?
WeatherBill customers include large companies and small businesses from a range of weather-sensitive industries. To be eligible, WeatherBill customers must purchase coverage solely as a commercial hedge against a weather event that, if it happens, would have a material impact on their business operations and financial condition.How much does WeatherBill coverage cost?
It depends on the type of coverage you buy, when you buy it, and how much you want to be paid. If you want to be paid for weather that happens frequently, the coverage will be more expensive. However, if you want to protect against unusual weather that can significantly impact your profits then the coverage will be less expensive. The earlier you buy the coverage, the cheaper it will be.What types of weather can you protect against?
We offer coverage for rain, drought, heat, cold, and snow. Dual-trigger coverage can be customized offline.Where is the weather measured?
Instead of a claims process, WeatherBill coverage payout is based on data observed at weather stations located in the United States, Canada, Mexico, the Carribbean, and Europe. These weather stations are in most major to mid-sized cities in North America. Most of the stations that provide data to WeatherBill are at airports, but some are located at parks, university campuses, or military bases.
If you can't find your city or country on our list of stations, give us a call and we will work to either add it or find an alternative.
How early in advance of my coverage start date can I purchase coverage?
This depends on the coverage you create. Typically, no later than four days before your coverage period begins. For some types of coverage contracts must be purchases more than one month before the protection period begins. Given that forecasts begin to impact prices one month before the coverage period, we recommend purchasing as early as possible to receive the best price.What types of businesses do you work with?
WeatherBill works with businesses large and small in a wide range of different industries including retail, travel and leisure, sports, agriculture, construction, manufacturing, transportation, and entertainment.How many clients do you have?
We have clients all over the United States, Canada, and seven European countries. They range from seed growers to restaurant owners, ski area managers to professional sport team managers.How do I know you can pay me?
WeatherBill coverage is underwritten by Nephila Capital Ltd., one of the world’s largest and most respected weather risk and catastrophe reinsurance fund managers. Nephila is registered with the US Securities and Exchange Commission and currently manages over $2.3 billion in assets. Nephila invests solely in catastrophe and weather risk (rather than traditional financial markets) on behalf of large institutional investors, and their funds have zero correlation with other financial markets. In June 2008, Nephila sold a minority stake to Man Investments (EMG.L), a publicly-traded firm with roughly $80bn in associated assets.
To guarantee payment of all contracts, Nephila fully collateralizes the portfolio of WeatherBill contracts with cash held in trust at the Bank of New York Mellon. The trust agreement requires the Bank of New York Mellon to hold funds solely for paying out potential customer payout obligations. This structure allows WeatherBill to guarantee full and complete payment, under any conditions, to all of our customers.
I’ve never had to purchase this type of coverage before. Why should I start now?
Until 2007 you’ve never had the option of purchasing this type of coverage. WeatherBill offers a new way to protect your profit and control costs from bad weather. Also, based on historic weather trends, the climate is changing. Today’s weather is different from the weather that happened in the past several decades. WeatherBill has conducted studies on temperature and rainfall in the United States and found that many cities are getting dryer while others are seeing more rainy days.
Is this gambling?
WeatherBill is not a form of gambling. If you are an eligible buyer and purchase coverage, you are entering into a legal and binding contract with WeatherBill. WeatherBill contracts are intended to be used as risk-management instruments that can help buyers manage financial risk tied to the weather. We think that not protecting your business from bad weather is the real gamble.