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Guides to protecting your business.
Plain answers to common questions about rising costs, bad weather and promotion refunds, and how each kind of protection works.
Input costs
- How can my business protect its margins from tariff increases?Pass duties on with price clauses, change suppliers, buy early, or use an event contract that pays if an agreed tariff rate takes effect.Updated
- How do I protect a fixed-price quote when material costs rise?Escalation clauses, supplier price locks, futures through a broker and event contracts can each protect a quoted price. How they compare.Updated
- How can a small business protect itself from diesel price spikes?Fuel surcharges, fixed-price fuel programs, diesel futures and event contracts can each limit a diesel price spike. What each covers and costs.Updated
Weather
- How can a seasonal business protect its revenue from bad weather?Business interruption insurance usually needs physical damage. Compare parametric insurance, weather event contracts and cash reserves for seasonal revenue.Updated
- How do heating-fuel and snow-removal businesses protect against a warm winter?A warm winter cuts heating-fuel and snow-removal revenue. Compare weather derivatives, parametric insurance, event contracts and fixed seasonal contracts.Updated
- What is the difference between parametric weather insurance and weather event contracts?Parametric weather insurance is paid by an insurer. Weather event contracts are settled by a CFTC-regulated exchange. Compare triggers, payout speed and cost.Updated
Promotions
- How do I run a “money back if the team wins” promotion without taking the risk?Cover a sports refund promotion with prize indemnity insurance, your own cash or event contracts. What each costs, the Jordan’s Furniture case and the terms.Updated
- What is the difference between prize indemnity insurance and event contracts?Prize indemnity insurance reimburses you under a policy. An event contract pays a fixed amount on an agreed outcome. Who is on the hook and how price is set.Updated
- How do I offer a “refund if it rains” or snow-guarantee promotion?Pick a weather outcome that can be measured, agree the weather station, and cover the refunds with insurance, your own cash or event contracts.Updated
How event contracts work
- What is an event contract, and how can a business use one?An event contract pays if an agreed event happens and nothing if it doesn’t. A business can use one to offset rising costs, bad weather or promotion refunds.Updated
- Is an event contract the same as insurance?No. Insurance pays through an insurer, often after a claim. An event contract pays under its terms if an agreed event happens, with no claims process.Updated
- Can a small business hedge real risks with prediction markets?Yes, for some risks. Event contracts pay if an agreed event happens. Some markets are thin, payout rules can be disputed and the event may not match your loss.Updated
This guide is general education. It is not an offer, and it is not financial, legal or tax advice. Terms, prices and availability depend on the contract.
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