This article was first published by Marsh here.
Increasing frequency and severity of natural disasters bring new risks that present chemical companies with difficult challenges. Parametric solutions can enhance your risk mitigation by filling gaps in insurance coverage.
Providing companies with more comprehensive coverage through parametric solutions
Natural disasters are increasing in frequency and severity, bringing with them unprecedented challenges for chemical companies. Direct physical damage from severe weather events such as Named Windstorms, wildfires, and other catastrophes can bring operations to a halt. Even companies that do not suffer physical damages often have to deal with sizable financial losses.
Parametric solutions can enhance your risk mitigation toolbox by supplementing your existing traditional insurance portfolio, filling coverage gaps that can leave your company vulnerable in the event of a catastrophic event. These underinsured or uninsurable risks include indirect financial loss, deductibles or exclusions, and non-damage business interruption. Plus, the quick payouts feature of parametric solutions can enhance your company’s liquidity, reduce revenue volatility, and enable investment in post-loss priorities, such as aiding affected employees.
We encourage you to explore this page dedicated to helping chemical companies understand their increased risk of exposure from natural disasters and how parametric solutions can provide them with comprehensive coverage enabling them be more resilient and minimizing their financial losses.