PRODUCT: Supplemental Parametric Hurricane Insurance

COMPANIES: Vortex Weather Insurance, Vortex Insurance Agency LLC; Mitsui Sumitomo Insurance USA Inc.

BEST RATING: A+

AVAILABILITY: Any licensed agent who offers commercial property & casualty insurance can register.

FOCUS: The 2025 Atlantic hurricane season begins in June, but last year's damage from Hurricanes Helene and Milton remains. With deductibles and various losses not covered by insurance, many businesses were left with tens of thousands of dollars of out-of-pocket costs.

“Major hurricanes are devastating to businesses. Our supplemental hurricane products provide financial relief quickly—when it's needed most—so businesses can get back to work faster," says Andy Klaus, vice president of business development, Vortex Insurance Agency.

COVERAGE DETAILS: This policy defines its coverage area using either a single 30-mile radius circle or a dual-circle setup with 30-mile and 60-mile radii around the insured address. If the recorded storm path of any category (1-5) hurricane passes through the 30-mile circle, or a category 3 or higher passes through the 60-mile circle, a predetermined percentage of the insurance limit is paid out. The payout amount is based on the storm's maximum recorded intensity at the time of intersection.

A standout feature of this coverage is its data-driven trigger, which removes the need to prove a covered loss or damage. This makes the policy simpler to structure, speeds up the claims process and enhances transparency.

Policyholders also have the flexibility to customize their coverage—choosing their insurance limit based on their risk tolerance and budget, without the requirement to insure-to-value. Plus, there are no restrictions on how claim payouts are used, giving the insured complete control over how they allocate their funds.

UNDERWRITING: Rates are determined based on the historical likelihood of hurricane activity in any given area. Vortex's applications are approved in all U.S. states. The minimum premium for any individual policy is $250 and there are a few per-policy limits. The current per-policy insurance limit for a hurricane policy is $1 million, but underwriting may offer higher limits on a case-by-case basis.

MINIMUM PREMIUM: $250.

COVERAGE AVAILABILITY: Supplemental hurricane insurance is available in all states along the Gulf of Mexico and Atlantic Ocean. Coverage in Hawaii is coming soon. Rain insurance is available in all 50 states.

TARGET: The product will be distributed by independent agents and brokers to commercial clients on the Atlantic and Gulf Coast.

CONTACT: Andy Klaus, vice president of business development, Vortex Insurance Agency; 7400 W 132nd St. Ste. 260, Overland Park, KS 66213; 913-253-1215.

Will Jones is IA editor-in-chief.