Critical Day Protection

Frost Day Cover and payout for excess frost days text with a graphic of white and blue circles in a grid pattern on a light blue background.

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

Text document outlining insurance coverage details for cold weather. Specifies cover period from December to March, threshold temperature at 32°F, frost day trigger at 5 days, payout of 10,000 USD per frost day, and cover limit of 100,000 USD. During the coverage, the provider reports 8 days where temperature drops below 32°F.

APPLICATIONS

Agriculture (late frost), construction (delay penalty), winter services, and other industries where losses per critical day are constant.

PAYOUT PROFILE

A graph showing the relationship between trigger level and payout amount across different frost days. The x-axis represents the number of frost days, while the y-axis indicates payout and limit levels. The payout increases in steps as frost days increase, crossing the trigger point.
Table showing daily records of temperature in Fahrenheit, frost days, and cumulative frost days from December 31 to February 7.

Payout calculation: (8 cumulative frost days – 5 trigger frost days) * USD 10,000 payout per frost day = USD 30,000

Excess Degree Protection

Cover page for a report titled 'Freeze Degree Cover – Payout for Excess Freeze Degrees' with a gradient blue background and a pattern of white and blue circles arranged in a grid.

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

A text-based document with parameters for a refrigeration or freezing system, including cover period from December to March, temperature threshold at 32°F, freeze degrees, trigger at 15 freeze degrees, payout of $10,000 per freeze degree, cover limit of $1,000,000, and monitoring of 8 days below the threshold.

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

Line graph showing payout increases with the number of freeze degrees, with a trigger point at certain freeze degrees and a payout limit at the maximum level.
A chart showing daily minimum temperatures in Fahrenheit, freeze degrees, and cumulative freeze degrees from December 31 to February 7.

Payout calculation: (40.5 cumulative freeze degrees – 15 trigger freeze degrees) * USD 10,000 payout per freeze degree = USD 255,000