The company’s flagship product, GridProtect, is designed to provide immediate financial relief to businesses affected by power outages, which currently result in annual losses of $150 billion across the United States.
Power outages pose a significant challenge for approximately 15 million U.S. businesses each month, leading to substantial financial ramifications. According to the Electric Power Research Institute (EPRI), the costs associated with a power outage can vary dramatically, ranging from $2,108 to over $8,000, depending on the outage duration. However, Adaptive Insurance emphasises that investing in resilience measures can generate considerable savings, with every dollar spent yielding $13 in reduced clean-up and economic costs. These savings can then be redirected toward business growth, employee support, and community engagement.
Traditional insurance policies often leave businesses vulnerable due to coverage gaps, leading to potentially severe financial consequences. GridProtect seeks to address these issues by leveraging advanced AI and climate data to offer parametric coverage tailored for short-duration outages. The innovative approach eliminates the conventional 24-hour waiting period for coverage activation, ensuring timely protection and minimising financial disruption.
“We’ve seen it all across the U.S. – climate change is accelerating faster than the insurance industry can adapt, and businesses are paying the price,” stated Mike Gulla, CEO and Co-Founder of Adaptive Insurance. He added, “We designed GridProtect to fill a critical void in the market. With our AI-powered platform, businesses can now insulate themselves from the financial shock of power outages the moment they occur—less waiting, less uncertainty.”
The frequency of power grid failures has increased alarmingly, with 80% of the 1,755 major outages in the U.S. since 2000 attributed to weather-related events. According to FEMA, businesses that close for just five days due to such disruptions have a 90% chance of never reopening.
“Adaptive Insurance’s GridProtect helps businesses quickly recover by providing immediate capital that they can allocate as needed, aiding in the navigation of both short- and long-term impacts of power outages,” the firm explained.
Adaptive Insurance is among the first companies to emerge from Montauk Climate, an incubator dedicated to climate technology. Philip Krim, Founder and Partner at Montauk Climate, remarked, “Climate and weather events cause $1 billion in damage every three weeks in the U.S.”
He added “We launched Adaptive to address this immense and growing problem with a novel approach that is both effective and scalable. Mike Gulla and Arik Yelovitch have the vision and expertise needed to steer this innovative company, making them the ideal leaders for this mission.”
