Vendor and Venue Mishaps Top List of Wedding Insurance Claims in Faltering Economy
Vendor and Venue Mishaps Top List of Wedding Insurance Claims in Faltering Economy Majority of claims tied to wedding cancellations, bankrupt venues, no-show vendors; Travelers urges couples and parents to review insurance options
HARTFORD, Conn., Mar. 2, 2009
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 Companies (NYSE: TRV).
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.”
With the Spring wedding season right around the corner, Travelers encourages couples and their parents to ensure that they have proper coverage should something go awry in the weeks leading up to the wedding. Wedding insurance, such as the nodeductible Wedding Protector Plan SM offered by Travelers, 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.
According to the Travelers data, 22 percent of 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*,” said Tuvin. “Wedding insurance makes good financial sense to protect the investment.”
For more information on protecting your wedding, visit www.protectmywedding.com.
The Travelers Companies, Inc. (NYSE: TRV) is a leading property casualty insurer selling primarily through independent agents and brokers. Travelers understands that life and business are inherently dynamic and that the best way to serve customers is to deliver insurance in-synch with evolving risks. The company’s diverse business lines offer its global customers a wide range of coverage in the auto, home and business settings. Travelers is a Fortune 100 company, with 2008 revenues of approximately $24 billion. The company has more than 33,000 employees. For more information on being in-synch, visit www.travelers.com.
* The Wedding Report, Inc. 2008