Protection Against Adverse Weather for the Construction Industry

Our parametric covers offer an alternative solution

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The frequency & severity of excess precipitation, extreme heat, and wind events around the world has led to:

An uninsurable traditional market; there is no comprehensive coverage in markets (e.g. United States) for adverse weather that, in effect, causes project delays

Increasing rates of self-insured contractors with capacity non-existent (especially against excess precipitation)

Clients forced to pay significant additional project costs due to weather-driven damage/delays

Delayed claims assessment & payment due to disputes regarding policy definitions & exclusions (e.g. property contents, inventory, penalties etc.)

construction project delay due to adverse weather

Key benefits


Fresh capacity:

Parametric products offer an alternative to un-insured risks


Customised protection:

Flexible and straight-forward structure tailored to clients needs



Certainty of indemnification with pre-agreed thresholds & payout amounts


Timely claims payment:

On-site monitoring, weather stations, & location data permit for real-time claims assessment & quick payout following a triggering event. Allowing clients the flexibility to allocate funds towards repair costs that help speed up the return to full-operation

Parametric insurance against excess precipitation & other climate risks: an innovative solution for the construction industry

Adverse weather affects 45% of construction projects globally, resulting in billions of dollars in additional expenses and lost revenue. From extreme temperatures to excess wind or rain, adverse weather increasingly disrupts well-planned processes and timelines, representing the leading cause of construction project delays, and subsequent penalty and financing costs. These impacts come both as direct and contingent business interruption losses, often uncovered by traditional policies.

The construction industry tends to take the full brunt of adverse weather conditions, as projects operate year round. Work suspension, project delays and damaged equipment all force contractors to pay hefty additional project costs. As abnormal weather conditions heighten the pressure on construction companies, comprehensive coverage for weather-driven project delays doesn’t exist in the traditional market.

Parametric risk transfer solutions offer access to new sources of capacity globally.  These tailor-made and adaptable policies offer an alternative to traditional financing options in the aftermath of delays or damages, ensuring clear terms and expected payouts precisely when contractors require them. Descartes’ parametric insurance for perils such as excess precipitation offer swift liquidity and are structured to directly meet the  client’s needs, budget, risk appetite, and asset location(s). With a parametric cover in place, contractors can hedge delayed start-up impacts and benefit their bid by tangibly derisking exposure for the developer.

Protecting ongoing projects amidst weather & climate uncertainty – Descartes’ parametric insurance offers financial protection against adverse weather.

case study example

Excess precipitation product to cover project

Learn how one contractor used Descartes' parametric excess precipitation product to cover their million dollar project:


A client received 7.13 inches of rain over just 4 days, causing disruption to their ongoing project. With no option for insurance coverage from the traditional market, the heavy rainfall caused delays beyond what they had anticipated in their contract.


With increased awareness of their ongoing exposure to excess precipitation, the client & their broker opted for a parametric policy to cover their next project. It was the only policy on offer that could provide cover for weather delays that exceeded the initial contract.


The client could customize their policy, selecting a suitable risk period & ensuring cover for the adverse weather days that exceed the initial contract budget of 20 days. With the policy in place, if the excess precipitation event was repeated, they would receive the full daily limit for those days.

payout structure
The client would receive the full daily limit USD $40K

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