Chicago, IL-May 11, 2009 - With the number of commercial bankruptcies on the rise, some brides and grooms are getting burned by bankrupt vendors. Because of the weak economy, couples might want to consider wedding insurance and the Better Business Bureau is offering advice on purchasing coverage for the big day.
While more well-known company filings make the headlines, many smaller, independent businesses are also struggling in the current economy. According to Travelers Insurance, 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.
“Considering the costs of weddings, soon-to-be newlyweds have a significant amount of money on the line and a vendor’s ‘Going out of Business’ sign can be far worse than rain on their wedding day,” said Steve J. Bernas, president & CEO of the Better Business Bureau of Chicago and Northern Illinois. “Wedding insurance can provide peace of mind for a couple that their money will be recovered if a vendor or venue falls through at the last minute.”
Aside from the gown, wedding insurance can provide a variety of coverage for many mishaps that might affect a wedding including vendor no-shows, foul weather, military deployment, and health issues affecting key participants.
BBB offers the following advice on purchasing wedding insurance:
- Always research insurance companies first with BBB by reviewing BBB Reliability Reports free of charge online at www.bbb.org
- Shop for wedding insurance before paying deposits on any wedding services to make sure all expenses are covered.
- Comparison shop and pay close attention to the fine print. According to the Insurance Information Institute, insurance will cost between $125 to $400 depending on the amount of coverage. Like any insurance plan, there are limits on claims and deductibles that must be met.
- Avoid purchasing overlapping coverage. Some vendors might already be insured or coverage might be provided by the credit card company.
- Keep good records and all receipts for the insurance company in order to justify any reimbursements.
For more advice on planning a consumer-savvy wedding, go to www.bbb.org.