Critical Day Protection
DESCRIPTION
A frost day is defined as a day in which the daily minimum temperature (T-min) is below the defined threshold temperature.
If the trigger number of frost days is exceeded, the policy holder will receive a fixed amount for each additional frost day up to the cover limit.
EXAMPLE
APPLICATIONS
Agriculture (late frost), construction (delay penalty), winter services, and other industries where losses per critical day are constant.
PAYOUT PROFILE
Payout calculation: (8 cumulative frost days – 5 trigger frost days) * USD 10,000 payout per frost day = USD 30,000
Excess Degree Protection
DESCRIPTION
Daily freeze degrees are calculated as the difference between the threshold temperature and the daily minimum temperature (T-min), where T-min is below the threshold temperature.
If the trigger number of freeze degrees is exceeded, the policy holder will receive a fixed amount for each additional freeze degree up to the cover limit.
EXAMPLE
APPLICATIONS
Agriculture (harvest rain), construction (delay penalties), tourism (non-damage business interruption), and other industries where losses depend on the amount of excess rainfall.
PAYOUT PROFILE
Payout calculation: (40.5 cumulative freeze degrees – 15 trigger freeze degrees) * USD 10,000 payout per freeze degree = USD 255,000