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Small businesses using prediction markets as insurance against bad weather and tariffs is a way bigger deal than people realize.
Small businesses are starting to use prediction markets to hedge tariffs, shipping costs, and bad weather.
Tea company Zest used a prediction market payout to help offset tariff-related lost sales.
Its founder also helped develop a contract that pays when container shipping costs exceed certain thresholds.
Other businesses are experimenting with weather contracts to hedge canceled kayak trips, slower ice cream sales, and crop damage.
Prediction markets are leveling the playing field for small businesses.
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