What You Should Know About Event Postponement and Cancellation Insurance

No matter how thoroughly you’ve mapped out your upcoming event, it’s impossible to prepare for everything.

As evidenced by the last year or so, sometimes life steps in and unravels what you’ve been working toward.

We’ve been encouraging clients to purchase event postponement and cancellation insurance, which covers customers if an emergency interferes with their big day, since we opened.

And we also strongly encourage you to determine exactly what the policy you’re considering covers before you commit to it.

Putting your event on hold (temporarily or permanently) is stressful enough. You don’t need the added aggravation of learning the coverage you assumed you had doesn’t apply to your situation.

Here’s a closer look at event postponement and cancellation insurance and how it works.

The Basics

With event cancellation or postponement insurance, you pay a one-time fee to cover a wedding or major event in case unexpected circumstances, like a weather event or serious injury, impede your ability to move forward with your plans.

Depending on the policy you choose, it will reimburse you for non-refundable payments you’ve made to book an event venue along with vendors (flowers, food, entertainment, etc.), and maybe even honeymoon expenses.

EventInsuranceQuote.com puts it this way: “Event Cancellation Insurance provides coverage for the loss of revenue derived from OR expenses committed to an event due to a

cancellation, abandonment, interruption, curtailment, postponement, or relocation caused by covered perils as defined in the policy as covered perils.”

Notice the “as defined in the policy” phrase. That goes back to our earlier advice: It’s important to understand what your policy will cover.

Pandemic-Related Cancelations Won’t Be Covered

In 2020, when COVID-19 initially forced countless people to postpone weddings, parties, and other special events, those with cancellation and postponement insurance had a chance of being reimbursed, depending on their policy and insurance company.

Now that the pandemic is a worldwide reality, insurance companies argue that a forced cancellation because of COVID no longer counts as an unforeseeable disaster.

“In short, you shouldn't purchase wedding insurance to protect against coronavirus, just like you can't buy auto insurance after you've been in a wreck,” Investopedia explained. “Wedding insurance can protect against a vast range of perils, but a pandemic isn't one of them.”

That means you’ll want to talk with the venues and vendors you’re considering in advance to discuss their COVID-related policies and decide if they’ll meet your needs.

Additional Coverage Options

So, in addition to major disasters, what kinds of situations can you get coverage for? Here are a few possibilities to ask your prospective insurer about:

·????? The officiant or a major vendor, like the florist, doesn’t deliver agreed-upon services.

·????? Special attire or jewelry, such as a wedding dress or ring, is lost or damaged.

·????? Gifts are lost, stolen, or destroyed.

·????? Event photographs are destroyed.

·????? An immediate family member, event participant, or the officiant?cannot attend because of a military deployment.

Money and Other Considerations

How much can you expect to pay for event cancellation and postponement insurance? The cost of your policy will vary by provider and the level of coverage you want. Generally, policies begin at $130 for $7,500 in coverage according to Money.com.

From what we’ve seen, buying policies in the $400 range meets most clients’ needs.

Here are a few more things to keep in mind as you research your options:

·????? Purchasing windows: Some insurers won’t sell policies more than two years in advance or later than 16 days before a wedding or special event.

·????? Changes of heart: Policies rarely cover brides or grooms backing out of a wedding, though there are exceptions.

·????? Budgeting: Many insurers require payment in full upfront; they will not accept installments.

While shopping and purchasing event-cancellation insurance involve some extra time and expense, it can protect you from significant loss and stress in the long run. And having coverage in place frees you to focus on planning and enjoying your event.

About the Author:

Roger Igo?is the founder and CEO of special events venue,?The Bell Tower on 34th, along with?Excellent Events, and?Venues in Houston. He is the author of “Keep On Going, The History of The Bell Tower on 34th,” a former radio host, a graduate of CEO Space International, and an alumnus of The Disney Institute.