Parametric Insurance for Non-Damage Business Interruption

The growing interdependence of global markets introduces significant operational vulnerabilities. Parametric insurance safeguards P&L and balance sheets against Non-Damage Business Interruption by covering indirect financial losses resulting from events like severe weather, natural disasters, cyber attacks, and more.

Addressing non-damage business interruption risk

In an increasingly interconnected global economy, numerous industries find their revenues intricately linked to events such as severe weather, natural disasters, or cyber attacks, regardless of physical proximity or direct property damage. Greater global exposure of firms means the impact of such events can reverberate across the globe. 

Take, for instance, a manufacturer located in the United States relying on a supplier in Japan. Should an earthquake strike in Japan, the repercussions can force the U.S. manufacturer into an operational shutdown, despite having not suffered any direct physical damage and being located thousands of miles away. 

Descartes’ parametric non-damage business interruption insurance emerges as the optimal solution for sophisticated risk contingency programs. Tailored for firms that have pinpointed vulnerabilities within their organizations, this insurance offers coverage against specific weather events that significantly impact essential inputs and result in severe financial consequences. 

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non damage business interruption
Step 1


We assess and evaluate the respective indirect weather exposure on the client, leveraging propiertary risk models and relevant datasets.

Step 2


Design a customized cover, fit to the client's needs, in which payout structures are indexed according to the chosen parameters.

Step 3


Upon policy inception we monitor the insured location(s) to determine whether a qualifyig event has occurred.

Step 4


Insured client receives a payout within a few weeks of the policy being triggered, receiving compensation for indirect financial losses and protecting its margin.

Our parametric approach to non-damage business interruption exposure

In full collaboration with the broker & client's risk management team, we define the specific natural risk and location(s). Leveraging our proprietary models, Descartes creates a tailored insurance program to effectively mitigate the financial repercussions of the identified natural event affecting the identified location concerning the client.

Like all parametric products from Descartes, our swift indemnification process requires no loss adjustment, enabling clients to adapt rapidly — for example, by sourcing alternative suppliers in response to unexpected disruptions.

Our product unlocks coverage for a wide range of businesses and public entities, including manufacturers, technology, semiconductor industrials and industrial clusters, hotels, food and beverage, pharmaceuticals, and transportation. In addition, It offers protection against some of the world’s most challenging risks, such as ransomware attacks, river level volatility, crop yield fluctuations, a range of extreme weather events, and prominent natural catastrophes such as wildfire, tropical cyclone, and earthquake. 

non damage business interruption

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