ACE USA, the U.S.-based retail operating division of The ACE Group of Companies, has introduced hurricane spin-down insurance that can be used by the chemical process industry to help reduce the financial costs of closing down plant operations in response to the threat of a hurricane.
This new insurance policy – part of the StormTracker suite of weather insurance products – is reportedly unlike traditional property policies and will respond even if the plant does not suffer property damage as a result of the hurricane.
“We are pleased that this new product will help our chemical and refinery clients err on the side of caution by safely spinning down plant operations in response to a hurricane,” Ed Zaccaria, president, ACE Specialty Products, said. “This Hurricane Spin-down weather insurance product will be structured around the client’s specific hurricane response protocols and alleviate the financial costs of closing down operations until the threat passes. Where such protocols do not exist, our ESIS Engineering Unit has the required expertise to work with our clients to develop optimal hurricane spin-down procedures.”
The Hurricane Spin-down policy will pay a pre-determined value to cover the lost income and extra expenses incurred during the period of spinning down and spinning up plant operations. Coverage will be triggered if the probability of a hurricane impacting the covered location reaches an agreed-upon critical threshold based on the plant’s hurricane response protocols. This insurance policy is available for coastal areas in the United States and the Caribbean. The coverage period can extend from a few days to the entire hurricane season.
“This new product is yet another of ACE USA’s structured hurricane products that can be easily added on to existing property insurance covers for chemical process industries,” Ravi Nathan, senior vice president, Global Weather for ACE Specialty Products, said. “Our goal is to continue developing and marketing weather products that bridge the gaps left by traditional insurance coverage. We now have customized hurricane insurance covers for a wide range of industries from hospitality to manufacturing.”
ACE USA’s Hurricane Spin-down insurance product will be marketed through both retail and wholesale insurance brokers.
For more information, contact Nathan at firstname.lastname@example.org.
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