Wednesday 06 December 2023 - Thought Leadership

Winter Businesses that Benefit from Income Stabilization Insurance

snow plow

Unpredictable winter weather can have a significant impact on various businesses that thrive during the colder months. Whether it's ski resorts, ice skating rinks, snow removal companies, snowmobile rental companies, or restaurants that rely on a winter wonderland atmosphere, adverse weather conditions can deter customers. This results in a loss of revenue for businesses that heavily depend on specific winter conditions during peak seasons to drive sales. While we cannot control the weather, we can turn to income stabilization insurance to mitigate the financial impact. Income stabilization insurance is designed to address the loss of revenue caused by unfavorable winter weather conditions, providing coverage on a seasonal or annual basis. Upon meeting the policy conditions, the insured will receive a payment that helps protect their bottom line. 

Income stabilization insurance acts as a safeguard for winter businesses against the unpredictable nature of winter weather. Here are five types of winter businesses that can benefit from this type of insurance:

  • Ski Resorts  
  • Ice Skating Rinks
  • Snow Removal Companies 
  • Snowmobile Rental Companies
  • Restaurants

Ski Resorts*
Income Stabilization Insurance offers invaluable protection for businesses like ski resorts and snowboard parks. Imagine a winter season with unseasonably warm temperatures that disrupt peak skiing hours, significantly impacting expected revenue. This insurance provides a financial safety net, making up for the shortfall in customer visits during typically busy and profitable periods. This tailored coverage ensures that despite unpredictable winter weather, the ski resort's profitability remains steady and secure, allowing it to continue its operations without financial disruption.

Ice Skating Rinks
For businesses like ice skating rinks that heavily depend on consistent cold weather for their operations and revenue, Income Stabilization Insurance is a crucial asset. In the event of unexpected warm spells or unusual winter thaws during peak ice-skating hours, the rink could see a significant decline in visitor numbers and, consequently, its bottom line. However, with Income Stabilization, the ice-skating rink's income is protected. Coverage helps compensate for the lost revenue, ensuring the financial stability of the business even when winter weather conditions are unfavorable. 

Snow Removal Companies  
While many often regard excessive weather as a challenge, certain businesses, such as snow removal companies, depend on it for their revenue. These companies are at risk when a mild winter results in minimal snowfall, leaving them with little work and income. Income Stabilization Insurance serves as a financial shield for snow removal companies, preserving profit margins and safeguarding the business from financial instability due to a scarcity or surplus of snow. The policy is designed to trigger a payout when snowfall levels are below, at, or above predetermined amounts, ensuring consistent revenue despite fluctuating weather conditions.

Snowmobile Rental Companies
Income Stabilization Insurance is a strategic financial tool for businesses such as snowmobile rental companies that are heavily dependent on favorable winter weather for their operations. If the company faces an unexpected spell of poor winter weather conditions - be it a lack of snowfall or extreme cold - the number of rentals could drastically drop, negatively affecting its bottom line. However, with Income Stabilization, the snowmobile rental company's income is secure. This insurance compensates for the lost revenue, maintaining the business's financial health even when winter weather conditions fail to cooperate.

Income Stabilization Insurance is a crucial financial safeguard for businesses like restaurants that often rely on a warm and inviting winter ambiance for peak revenues. If these establishments experience unexpected periods of adverse winter weather, such as extended snowstorms or unusually cold temperatures during prime winter hours, patron numbers may dwindle, thereby negatively impacting their bottom line. Income Stabilization covers lost revenue, maintaining the financial stability of the business even when winter weather conditions are less than ideal.

How Tokio Marine HCC – Specialty Group Can Help
Winter weather can have diverse impacts on client’s winter business. At TMHCC we evaluate our client’s unique winter-related risks and create a tailored solution that fits client-specific concerns and requirements. Whether it's heavy snowfall, freezing temperatures, or a mix of winter elements, we devise policies that provide comprehensive coverage. We help our clients safeguard their winter businesses so they can focus on providing a magical winter experience to their customers.

*Income Stabilization coverage for Ski Resorts is determined on a case-by-case basis. 


Contact details

Robin Lang

USA - Vice President - Contingency