Tuesday 22 December 2020 - Thought Leadership

Weather Insurance Solutions: Bars and Restaurants

By TMHCC Specialty Group

Weather insurance solutions for bars and restaurants facing Covid-19 restrictions

With Covid-19 causing major disruption for most businesses this year, undoubtedly one of the hardest-hit sectors has been the hospitality industry, and across Europe, bars and restaurants have borne the financial brunt of lockdown measures.

Alfresco Dining

In the UK, the introduction of tiered restrictions which banned individuals in Tier 2 or 3 from mixing with other households inside, has contributed to the hospitality industry seeing a drop in both bookings and revenue.

With no immediate end in sight and winter approaching, very few customers are opting for a table outside that doesn’t offer protection from the rain or freezing temperatures, meaning the hardship felt by this industry throughout 2020 is here to stay for a while longer.

One of the ways we have seen the industry adapt to the UK’s tiered restrictions, is by investing in outdoor patio heaters and marquees, to allow customers of different households to still enjoy getting together outside and bringing in some well-needed revenue to their business.

Although businesses are using innovative ways to comply with restrictions and keep their businesses afloat, extreme weather conditions such as snow and hailstorms can still strike at any time, potentially damaging the outdoor equipment, and again putting the business at risk of loss.

The light at the end of the tunnel

One way businesses can protect against extreme weather conditions, and the resulting loss of revenue is by investing in income stabilisation insurance. Our product protects businesses such as restaurants, golf courses, and outdoor theatres against adverse weather conditions and minimises the impact upon profits.

How does it work?

Example: A small restaurant owner in London invested in a marquee and heaters to facilitate outdoor dining, in preparation for Tier 2 restrictions. On mild days without too much wind or rainfall, this works perfectly for households wishing to mix and dine outside compliantly. However, the restaurant owner knows that strong winds and freezing temperatures will make for unpleasant dining conditions and deter customers, thus resulting in a fall in profits.

Result: The restaurant owner could take out income stabilisation insurance to cover their profits to a certain amount per day, for each day an agreed measure of adverse weather impacts them.

If and when adverse weather does occur, the policy will payout for any profit affected by the determined weather outcomes.

Get a quote

If you are interested in acquiring income stabilisation insurance to protect your business’s revenue over the coming winter, you can get a quote here or speak directly to a member of our team on +44 (0)20 7648 1282 to learn more about how our cover works.

Contact details

Neil Paddon
Neil Paddon

Head of Contingency Underwriting - Specialty Group

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Martha Crowhurst
Martha Crowhurst

Senior Underwriter - Specialty Group

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Anthony Osterrieth
Anthony Osterrieth

Head of International Business Development - Specialty Group