Event Cancellation Insurance

Preparing for a big event like a wedding can be exciting, but also expensive. After making all these plans, you count on everything coming together on one memorable day. Event cancellation insurance may help pay for the costs of unexpected events that may delay or disrupt your big plans.

Why Buy Event Insurance

Depending upon your arrangements, you may still be financially responsible for the costs associated with your event, even if it has to be cancelled. Event cancellation insurance policies are designed to help protect you from the costs of unexpected, disrupting events. Although each policy or certificate may be different, each could be tailored to the particular needs of your event.

In addition to the costs of a cancelled event, some insurance policies can protect you against the risk of damages to the locations used to celebrate the event or caused by intoxicated guests, injuries sustained during your event, damages to rented clothes or jewelry and even coverage for gifts you received. 

Don't My Other Policies Cover Me?

Most traditional property and casualty insurance policies cover you for unexpected losses that affect your property or make you liable for a lawsuit, but they most likely do not cover you for disruptions to plans or events for which you may have already paid. Some traditional property and casualty insurance policies may cover you for the cost of damages to certain personal items,  but may cover only part of the loss and not the actual cost.

Am I Required to Buy Event Cancellation Insurance?

There are no specific laws requiring anyone to purchase event cancellation insurance, however, any contracts you sign with vendors or locations may potentially require it. It may also be prudent to consider this coverage to protect your investment in the reservations and deposits you may have made.

How Do I Obtain Coverage? Can I Ever Be Turned Down

Event cancellation insurance is offered in a competitive market. You have the right to shop around for coverage from companies available in your area, but a company also has the right to turn down your application for coverage.

In order to obtain an insurance policy, you must fill out an application to help the insurance company learn about you, your event, and the risks the insurance company would be responsible for if they insure you. After reviewing the information, the insurance company will use its own standards, known as underwriting guidelines, to decide whether to issue you a policy, and the rate it would charge for the coverage.

If an insurer agrees to consider your application, the producer or company may issue you an "insurance binder", a legally binding statement indicating that you have immediate protection for a specified period of time during which the company will decide whether to issue you a policy. If the company formally accepts your application, it will issue a policy, usually covering the duration of the event. If your application is rejected, you will need to apply to another insurer.

Some insurers use direct marketers who sell insurance through the mail and by telephone. Others insurance companies sell coverage through producers that only represent their company. These companies call their producers an exclusive agency force. Independent agents represent several companies; therefore, you can get quotes for more than one company from just one producer. 

Can An Insurer Ever Cancel My Coverage?

Yes, an insurer can cancel your coverage. You should read your policy carefully to determine the conditions for cancellation. Companies can cancel or non-renew coverage, but only according to the conditions that are spelled out within the policy.

What Level of Coverage Do I Need?

You should only consider buying coverage up to the level of your need because the amount of coverage you buy will affect the price that you pay. 

For example, maybe you only want enough coverage necessary to compensate you for the cost of nonrefundable deposits or reservations that you have already paid for. Other coverage should only be bought if it does not duplicate coverage that you already have; you should check your other policies to determine what coverage you already have.

Most insurance companies offer a variety of discounts based upon projected reduced risks for certain features.

What Should I Do If Something Happens at my Event?

Most insurance policies generally require you do the following things:

• Give notice to the insurance company.
• Protect yourself from further losses or damage. Do not take any actions without the advice of counsel.
• Give your insurance producer, claims adjuster and/or insurance company a copy of a list of all damaged, destroyed or stolen property (being sure to keep a copy). In case of theft, be sure to give another copy to the police.
• Show the damaged property to your insurance producer, claims adjuster and/or insurance company, if asked. Do not dispose of any damaged property until your producer, claims adjuster and/or company says you can.