Cat Fund (Catastrophe Fund)

A Catastrophe Fund, often referred to as a Cat Fund, is a financial safety net established to cover significant losses from disastrous events, such as natural disasters (like hurricanes or earthquakes) or large-scale accidents. It pools resources from various sources, such as governments or insurance companies, to provide quick financial assistance and support for recovery efforts. By spreading the financial risk, Cat Funds help ensure that affected areas can rebuild and recover without overwhelming financial strain, ultimately promoting resilience against future catastrophes.