Good article here in the Chattanooga Times Free Press discussing the use of weather insurance to protect an outdoor event from losses. The article demonstrates the wide availability of weather risk management cover these days and also that it’s not as expensive as many may think.
There does perhaps need to be new ways to weight this kind of weather cover to make sure the price is right for the size of event and the risk factors at play. Costs can vary wildly based on the atmospheric risks of a region but with little regard for the size of event, number of attendees etc. This is where companies who provide weather cover can be a little more imaginative with their offering if they themselves have a backstop of weather derivatives rather than a traditional insurance play who’s backstop is collateral.