More than 40 percent of all Travelers’ wedding insurance claims filed during the past two years involved unforeseen problems with vendors and venues, some of which went bankrupt in the worsening economy, according to data released by The Travelers Cos.
Travelers’ data revealed that 43 percent of the claims it fielded stemmed from problems with caterers, photographers, wedding planners and other vendors. In some cases, vendors failed to show up on day of the wedding. In other instances, venues went out of business or experienced some other financial setback.
“What this indicates is that some wedding vendors and venues are facing many of the same financial challenges as other businesses,” said Alan Tuvin, vice president of product management for Travelers. “The reality is that no one entity is immune to the issues with today’s economy.”
Wedding insurance helps couples adhere to their wedding budget by covering some of the costs should something unexpected happen like a bankrupt banquet hall, a torn wedding dress or a no-show vendor. A growing number of couples are choosing wedding insurance to guard against issues such as lost deposits, host liability coverage, gift breakage, lost or damaged photographs and unavoidable cancellation or postponement due to military leave, Travelers reports.
The insurer says 22 percent of its wedding insurance claims were the result of a key family members (parent or grandparent) not being able to attend at the last minute for reasons like sickness, untimely death, travel delays, etc.; 19 percent resulted from broken or lost items such as dresses or rings; and 15 percent stemmed from weather events such as hurricanes and tropical storms as well as water-damaged property.
Average wedding costs are topping more than $20,000, according to The Wedding Report 2008. Tuvin says, “Wedding insurance makes good financial sense to protect the investment.”
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