A parametric policy pays a fixed amount when a measurable event occurs: wind speed at your site, rainfall over a threshold, an outage past a duration. Parametric Liability places that layer where a traditional claims process is too slow or the loss is hard to prove.
The policy is built around an objective, third-party-measurable index: a weather station reading, a quake magnitude, an outage feed. If the index can be disputed, it is the wrong index.
You choose the amount the trigger releases. There is no adjuster and no proof-of-loss negotiation, because the payment was agreed when the policy was bound.
When the trigger verifies, the payment moves. That speed is the product: it funds the gap while any traditional indemnity claim is still being adjusted.
A policy that pays a pre-agreed amount when a defined, measurable event occurs, instead of indemnifying a proved loss. The trigger is an objective index, such as wind speed at a named station or earthquake magnitude at your coordinates, so there is no adjuster and no proof-of-loss process. When the index verifies, the payment moves.
A traditional policy pays what you can prove you lost, after adjustment. A parametric policy pays what was agreed, quickly, whether your actual loss was larger or smaller. That makes it a complement rather than a replacement: it funds the first weeks while the indemnity claim is still being adjusted, or covers exposures a traditional form excludes.
Both happen, and that is called basis risk. It is the central design question in any parametric placement, and it is managed by choosing an index that tracks your real exposure closely. We spend most of the placement work on exactly this, because a badly chosen trigger makes the product useless in the year you need it.
Operators whose revenue moves with measurable conditions: agriculture and outdoor operations exposed to weather, coastal businesses exposed to named storms, businesses in quake zones, and anyone whose business-interruption exposure is real but hard to prove under a traditional form. Availability and terms are subject to underwriting and vary by market.
This site is an outreach desk of Delegance LLC, a licensed commercial insurance brokerage (NPN 21282686).
Parametric Liability is an outreach desk of Delegance LLC, a licensed commercial insurance brokerage. We write to operators whose revenue is exposed to measurable events a traditional policy pays too slowly for.
Every email we send includes a working unsubscribe link, and we honor every request immediately. If you would rather talk to a person, reply to the email or write to Alex directly.
Start online and a licensed broker picks it up from there. No phone call required to get an answer.
Start a conversation