Catastrophe Fund

A Catastrophe Fund is a specialized reserve of money set aside by governments, organizations, or insurance companies to help cover the costs of rare but severe events, such as natural disasters or large-scale emergencies. Its purpose is to provide financial stability and quick response ability when unexpected catastrophic events occur, reducing the financial strain on regular budgets or resources. Essentially, it acts as a safety net, ensuring that funds are available to address major crises without causing widespread economic disruption.