“Acts of God” – How to help clients protect their business

The past few seasons have demonstrated how fickle Mother Nature can be. Warm days followed by cold ones, stretches of rain followed by droughts – it’s enough to give a person whiplash. For your clients, the changing weather can mean unfulfilled contracts, cancelled events, damaged properties, and more.

Clients may think that catastrophic weather events are too few and far between to justify insuring against them, but everyday weather fluctuations can cause difficulties as well. Typical freeze/thaw patterns can cause damage to parking lots and buildings that will need to be repaired, for example, or rain can cause shipping delays that affect cashflow.

Here are some points to make when talking about weather-related insurance to your clients:

“If you are not protected by an insurance, then you must take full responsibility for the damage caused.”

This is a fundamental point to make, but still an important one.

The majority of catastrophes caused by weather or nature that harm or damage person(s) and/or business or properties are recognized by insurance companies as Acts of God or Acts of Nature. Making the client believe that these catastrophes are unforeseeable, very costly, unavoidable, and completely out of control by taking the realistic approach is an effective way to sell personal and business policies.

“Here are some examples of costly weather incidents that can cause you to lose money.”

Providing examples works as a caution to the client to protect against usual weather created calamities. Sometimes business clients have trouble envisioning everything that can go wrong – an insurance professional’s specialty.

If your contract is dependent on a product being delivered by a certain time, and rainy or icy weather causes transportation delays, you run the risk of leaving the contract unfulfilled – which can lead to the business losing money. Again, these sorts of issues don’t need a catastrophic event like a hurricane or blizzard to become a liability – just run-of-the-mill bad weather.

“It’s more financially viable to be proactive than reactive.”

The weather often can’t be predicted to 100% accuracy, so any business is limited in their ability to take proactive steps to protect their business. Even contract clauses relating to weather-related issues, or steps to “winterize” properties, can fall short in protecting your business from costly mistakes. But taking a proactive step to include weather insurance in your business insurance products can be an easy, immediate step that you can take to guard your cash flow. Often, the cost of the insurance is still less expensive than repairs or litigation from weather-related incidents.

Conveying the message that protecting against acts of nature, weather and other disasters through insurance not only simplifies their business journey, but also saves your clients and their families from hardship, is an effective way to personalize the threat that the weather poses. Using the talking points above, which can easily be tailored to your clients and their industries, will help them recognize the value of the policies you offer.


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