WEDDING INSURANCE COVERAGE ANALYSIS

(September 2020)

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Wedding Insurance is a form of special event coverage. The trend has, for many years, been that of increasing wedding costs. As of 2019, average national costs are just below $34,000. However, 2020 and the pandemic has and will continue to have a huge impact on wedding expenses.

Related Article: Weddings and Pandemic Impact

A study from “Bridal Guide” provides the following breakdown of average wedding costs:

Wedding insurance is not standardized. Typically, the form used by the company issuing coverage is a proprietary form. Therefore, it can be a challenge comparing programs and it would be dangerous to make assumptions about coverages, conditions, exclusions, etc.

This section is an attempt to discuss items that may be found in a form offering wedding coverage. It illustrates what may be found when dealing with this niche market. A comparison chart is available that could help you in evaluating differences between carriers.

Insuring Agreement

An insuring agreement represents the overarching obligation of the insurance company issuing the policy, obligating the insurer to respond to losses that qualify for coverage under the policy. That obligation is subject to various provisions found in the form. Further, it is subject to the insured paying the required premium. Also, any coverage hinges upon the accuracy of the information supplied by insured (via the application). Typically, information given by an insured is treated as a warranty. Significant inaccuracies (particularly when intentional) may allow the insurer to void coverage.

Definitions

Different insurers will use their own set of defined terms. Below are various terms observed in different policy forms.

Active Participant

Besides the bride and groom, it also refers to persons attending to the bride and groom (wedding party) and others who play a significant role in the covered (described) special event.

Bodily injury

Actual or physical harm to a person. Harm includes sickness, disease, or death (when the death is a consequence of the injury or disease).

Example: A wedding guest comes onto the reception dance floor to line dance. She loses her balance. She stops herself from striking a food table, but not before getting her face covered in potato salad. The guests laugh and tease her for the rest of the reception. While the guest is extremely embarrassed and inconvenienced, she did not suffer bodily injury.

Declarations

Form that lists the insured, the insurer, policy dates, the subject (event) being covered, the coverage limit, the deductible (if applicable) and any additional coverages and amounts.

Destination Reception

Refers to the celebratory gathering that supplements the covered event (wedding) but is located at a considerable geographic distance from the wedding location that may require access via air, boat, or rail travel. The location usually appears in the declarations and the term typically includes the distance between the wedding location and the destination reception.

Example: Jodi and Jersey’s wedding invitation included information on the reception as well:

Scenario 1: Their wedding is to take place in Indianapolis and the reception is in Fishers, a nearby suburb. This is not a destination reception

Scenario 2: Their wedding is to take place in Indianapolis and the reception is on a boat on Lake Michigan. This is considered a destination reception.

Event

Usually a broader term for a wedding that includes preceding and succeeding, related events (rehearsal dinners and receptions).

Event Photographs

Photos of the event that are taken by a professional.

Event Videos

Video footage taken of the event by a professional photographer/videographer. Being realistic, if no footage was paid for, what loss has occurred?

Extreme Weather Conditions

Refers to any hazardous climatic event that also includes the potential for causing widespread damage. Such conditions include floods, volcanic activity, hurricanes (typhoons and cyclones), blizzards and similar, major events.

Gifts

Refers to personal property that one party gives to the persons who are the subjects of the policy coverage. Further, the item given has to be connected to the special event being insured.

Example: Paula, who is engaged and whose special day is protected by a Wedding Policy, receives an imported espresso machine that is, shortly afterwards, stolen:

Scenario 1: It was taken from the gift table during her wedding reception – it qualifies as a “gift.”

Scenario 2: It was taken from her kitchen counter during her birthday party that took place two weeks after the wedding reception – it does NOT qualify as a “gift.”

There are several classes of property that are specifically excluded as gifts, such as aircraft, motor vehicles (designed for public road use), cash (and cash equivalents), gold or silver coinage, tickets, securities, passports, evidences of debt and similar property.

Honoree

This is the party that is named in the policy and who is the reason for the special event (wedding). In this case it should be the bride and the groom.

Leave

Permission given to a bride or groom to interrupt their military, civil forces, or emergency service duties in order to participate in the insured, special event.

Medical Expense

The cost of assisting with treating injuries, including medical/surgical procedures, dentistry, x-rays (likely would apply to similar, scanning procedures), drugs, prosthetics, glasses, hearing aids, ambulances, hospitalization, etc.

Nuclear Action

If nuclear reaction, radiation, or radioactive contamination causes a loss, such loss is ineligible for coverage, no matter how the nuclear reaction, radiation or radioactive contamination is caused. Any loss that is a consequence of the above is also not covered. Fire, explosion, and smoke often are part of a nuclear incident, but even if these perils are covered under the policy, when they occur as part of a nuclear reaction, radiation, or radioactive contamination loss, they are not covered.

There is one exception. If there is a direct loss by fire that is a result of the nuclear reaction, radiation, or radioactive contamination, it is covered.

Occurrence

Regarding the policy’s property coverage, it refers to accidental damage or loss to property covered by the policy. With regard to liability coverage, it refers to an accident which causes bodily injury or property damage (suffered by third parties).

Note: Continuous or repeated events are treated as a single occurrence under the liability portion of coverage.

Personal Injury

Harm (not including BI) caused by acts such as (but not limited to) false (unauthorized) detaining or imprisoning of another party, trespass or unlawful eviction, malicious prosecution, defamation, libel, slander, invasion of privacy. Related Court Case: “Personal Injury Liability Coverage Held Applicable to Claim for Damage to Reputation”

Photographs

Refers to pictures taken at the covered event by a professional photographer. The term does not apply to footage (moving/serial) images, regardless who takes them.

Policy Period

The period of time shown as the inception through expiration dates appearing on the policy’s declarations.

Postponement

A delay in holding the scheduled, covered event.

Pre-existing Condition

This term applies to any medical condition that arises and has been diagnosed, treated, or had medicine prescribed for it within 12 months prior to the inception date of the coverage for the described wedding/special event. It does not apply to conditions that are being treated with medication and that are considered under control in the one or two months immediately prior to the date of the event.

Note: This is regards to key members of the special event whose absence due to a medical condition would result in the applicable event’s postponement or cancellation.

Private Event

This term applies to the insured event (wedding) and related activities that occur immediately before and after the event. The event must be the item described in the declarations. Covered, related, activities include those that are thrown for the benefit of the “Honoree.” It also applies to related events thrown for persons who are relatives of the Honoree.

Property damage

Physical injury or destruction of tangible property, or the loss of use of tangible property, whether or not it is physically damaged (in other words, theft qualifies as property damage).

Reception

The post wedding event (including next day breakfast) that is arranged according to the details that appear in the policy’s schedule or elsewhere in the policy.

Note: This is an event that is normally within close proximity of the wedding location. If it is at a distance it is defined as a destination reception.

Rented Property

Personal property that is temporarily acquired to facilitate throwing the covered, private event. The term only applies to such property acquired by the insured or the honoree. Items commonly include chairs, tables, stages, etc. However, certain items do not qualify as rented property, including special clothing (i.e., tuxedoes, gowns), jewelry, precious stones, paintings, artwork, and similar property.

Note: A policy may also exclude any type of rented property that is either transported in a certain manner, such as by ship or may exclude items shipped to certain locations, such as areas outside of the Continental U.S.

Special Attire

Refers to clothing that is acquired (purchased, rented, or borrowed) specifically for wearing at the insured event. It includes apparel accessories. Such clothing qualifies for the definition when worn by the insured, the honoree, and that person’s ceremonial attendants. However, the term does not apply to watches, jewelry, or gemstones.

War

Besides war, this term includes undeclared wars and civil wars. Warlike action taken by a military force also falls under this definition. Further, the discharging of a nuclear war, intentional or accidental, also meets the definition of war.

We, Us, And Our

The insurance company providing coverage for the wedding (and reception).

Wedding

See Private Event.

Wedding Attire

See Special Attire.

Wedding Party

Refers to the bride, best man, flower girls, groom, the bride and groom’s families, bridesmaids, groomsmen, ushers, maid/matron of honor, and ringbearer.

You and Your

The person(s) who appear on the declarations as insured(s), typically the bride, groom, parents, or guardians of either and/or any other individual identified as the event’s (wedding/reception) organizer.

Note: There’s probably no other type of coverage where insured status can change so significantly and quickly as Wedding insurance.

PRIVATE EVENT CANCELLATION INSURANCE PROPERTY COVERAGE

Coverage

Typically, the policy will respond to loss suffered by the insured because the insured event (described in the policy) has to be cancelled or postponed (beyond the event date that also appears in the policy). In order to qualify for coverage, the described event’s cancellation or delay has to be caused by an eligible source of loss/disruption. Items covered by the policy are usually expenses that can’t be recovered (non-refundable). Eligible expenses often include the following amounts:

Facility Rental (church, reception halls, etc.) Costs
Catering Costs
Clothing Rental Fees
Photographer Fees (in some cases, videographer fees may also qualify)
Hotel Costs
Transportation Costs (limos, taxis for transporting wedding party or guests incurred by insured or honoree)
Air Transportation
Other miscellaneous, non-refundable costs

Example: Regina is to be married in ten days. She sends her sister to the dress shop to pick up the wedding gowns for the bride and bridal party. Her sister returns, frantic. She found the dress shop vacant with an “out of business” sign on the front door. She has no choice but to postpone the wedding. The refunds and deposits lost due to the decision are eligible for coverage.

Eligible expenses include those related to the honeymoon as well as the wedding itself. Other expenses may be the deposits for other services, such as florists, entertainers, etc. Naturally, payment of these costs is subject to the policy’s limit.

Note: Some policies express maximum available coverage as 125% of the original costs of the applicable services.

Exclusions

Several types of losses do not qualify for coverage. Usually, a private event/wedding policy will NOT pay for the following:

1. Loss that is due to a set of circumstances that the insured and/or the honoree were aware of when an application was submitted.

Example: The Gentler wedding party turns in a claim because they have to postpone their wedding for two months. Their insurer denies the claim. The postponement is due to a delay in the major renovations of the chapel where the wedding was to take place. The wedding couple was warned at the time that they set the date that the job may not be done in time. However, they did not disclose this information to the insurer.

2. Loss due to insufficient funds.

Loss caused by the covered parties lacking sufficient funds to pay for the covered event does not qualify for protection.

Example: Frank doesn’t know what to tell his fiancée. She was thrilled that they were able to reserve the Fantasy Hall for their wedding reception. Unfortunately, a freelance check that Frank was depending on was late and he was not able to pay the hall’s required final deposit. He not only loses the reservation; the initial $1,500 deposit is also lost. This is not eligible for reimbursement under Frank’s wedding insurance policy.

There is an important exception: if the reason for insufficient funds is because of an (unanticipated and) involuntary job loss, coverage still applies.

3. Loss caused by the application of a law or ordinance.

Example: Pete and Tessa are holding their reception. Both are music company executives and, as part of the entertainment, they arranged for several of their client bands to appear on several temporary stages. Halfway through the festivities, the police come by and close things down because of their breaking noise ordinances as well as zoning laws. The non-refundable expenses due to the close-down are not eligible for coverage.

Example: Lisay and Niles’ wedding reception was going extremely well until a group of uniformed persons burst into the reception areas, destroying the event’s main tent as well as most of their wedding gifts. Their insurer gives them worse news…they won’t cover the loss. The uninvited “guests” were police officers. They raided the reception due to reports of a large supply of illegal fireworks. The evening’s planned highlight was to be a huge fireworks display. Unknown to anyone connected to the wedding party, the use of fireworks is banned in the area. The authorities ended the reception and barricaded it for additional searches. The loss is ineligible for coverage.

4. Loss due to strikes or lockouts.

5. Loss due to actions of suppliers.

However, exceptions are made for failure to perform by persons hired to preside at a ceremony, to provide facilities, or to provide food/drink IF the insured and honoree have done their best to find other supply sources.

6. Loss due to Riots or Unrest.

However, there is an exception. If either the event or the length of the event is affected by civil authorities blocking access or evacuating the event site, coverage may still apply if the insured or honoree has made reasonable efforts to find an alternative site.

7. Loss due to Weather Conditions.

This exclusion applies to normal situations that terminate an event. Coverage still applies to postponement or cancellation due to the defined, extreme weather conditions.

Note: Adverse or extreme weather conditions refers to events so severe that they prevent attendance to the special event by the majority of attendees and/or they damage the event venue(s).

8. Loss due to Failure to Notify.

The policy will NOT reimburse any deposit, fee or expense created by the honoree’s or covered person’s oversight to contact a vendor and tell them of the event’s postponement or cancellation.

9. Loss due to an Honoree’s Decision.

When the covered event is terminated by the honoree, any and all event expenses are no longer eligible for coverage.

Example: Frank and Irmalue were scheduled to be married on July 6. On July 3, during a crazy-wild bachelor’s party, Frank’s best friend lets it slip that he was recently intimate with Irmalue. Enraged, Frank cancels the wedding. The costs that pile up after the cancellation are not covered by Irmalue’s wedding policy.

10. Loss due to Bodily Injury (Involving Hazardous Activities).

This source of loss that causes an event cancellation or postponement is not covered if it involves participation in hazardous activities (such as hunting, skiing, diving, vehicular racing and similar events), alcoholic beverages, self-inflicted wounds, military activities, and flying aircraft.

Example: The Adventursums file a claim. They lost all of their deposits because the groom, three weeks before the wedding, was in an accident. While taking deep sea scuba lessons, he was attacked by a shark. The recovery will take months. This loss is excluded.

11. Loss due to AIDS

Note: Some forms may exclude other medical issues, such as sexually transmitted diseases.

12. Loss due to Medical Advice.

Typically, a policy will deny coverage related to a covered event’s postponement/cancellation when bodily injury occurs before the event and a medical professional advised against participation in the covered event.

13. Loss due to Criminal Activity.

An honoree’s or attendant’s arrest or imprisonment which creates a postponement or cancellation of the covered event is not eligible for expense reimbursement or loss recovery.

14. Loss due to War and/or Nuclear Activity.

No coverage applies when a covered event is pre-empted by any military or nuclear activity.

15. Loss due to unavailability of a Wedding Party member caused by death, dismemberment, illness, injury or quarantine when the unavailability is due to alcoholic beverage use, drug use, known pre-existing conditions, pre-event pregnancy (though some policies may amend coverage to reflect this issue), and self-inflicted injury (including suicide).

Additional Expense Coverage

This coverage is similar to extra expense protection found in other lines of coverage. Typically, subject to a separate limit, it pays for added costs that are due to an insured or honoree making alternative arrangements in order to proceed with the covered event.

Example: The Chainderwalds’ daughter was scheduled to have their reception at the town’s luxury hotel ballroom. Three days before the wedding, the hotel suffers a fire and the ballroom is unavailable due to damages. Joe Chainderwald scrambles and is able to rent a wedding tent and the hotel granted permission to use its lawn. However, the tent company, having to do it as an emergency, also insists on full payment and increased set-up and breakdown fees. These extra costs are covered by the Chainderwalds’ Wedding Policy Additional Expense Coverage.

Event Cars and Transportation

This portion of the policy provides a limited amount of protection for expenses related to a need to arrange for alternative transportation. The need has to be due to the loss of pre-arranged (contracted) services from the vehicle supplier or transport service because of vehicle:

Accidental loss (theft, collision, etc.)
Breakdown
Unavailability, but only when circumstances are NOT under the wedding party’s control

Example: The Pledgelys weren’t happy about their reimbursement. They filed a $2,600 claim due to the cost of their lost airline and hotel reservations. The newlyweds didn’t make their flight because the only available vehicle from “Haphazard Limos” was totaled in a crash minutes before it was supposed to take them to the airport. Having their claim honored didn’t completely make up for their ruined plans.

Event Cars and Transportation Exclusions

No coverage is provided when vehicle unavailability does not involve a pre-arranged service or to loss that occurs after the wedding, reception or event has been completed.

Gift Coverage

This portion of the policy provides a limited amount of protection for loss of wedding gifts. The total available coverage is subject to the property category’s limit and individual gift sub-limit. Coverage typically applies to any item given to the honoree, related to celebrating the event. Gifts that are lost, damaged, or destroyed are settled on a replacement cost basis (no consideration of depreciation). The gifts must be located in the policy’s stated coverage territory and, if the item cannot be replaced through practical means, settlement may occur by securing an item of comparable kind and quality.

The most that will be paid for any singular, lost item is ten percent of the limit that appears next to the selection of Gift coverage.

Example: Gary’s Wedding Insurance Policy had the following coverage:
Gift Coverage Limit in Declarations	Individual Gift Coverage Limit
$5,700	$570
$22,500	$2,250
$13,000	$1,300

Gift Coverage Exclusions

This coverage part does not apply to losses involving ordinary wear/tear, action of insects/vermin, inherent vice, temperature/humidity/extremes, or gradual deterioration.

When the damaged or lost property qualifies as fine art, there is no coverage when the loss/damage is the result of efforts to repair or restore the property. For all other property, no coverage applies when loss/damage occurs while the property is being repaired, serviced, or maintained. Typically, there is an exception when the loss is due to fire or explosion.

Example: As a wedding gift, Lily’s grandmother gives her a valuable piece of sculpture. She takes the piece to a college friend who is getting a degree in art curation. The college friend, in an attempt to clean the piece, leaves a cleaning solution on that was improperly mixed and it ends up corroding and ruining it. This loss is ineligible for coverage under Lily’s wedding insurance policy.

When the property consists of statuary, marble, porcelain, glass, china, furniture and similar, fragile items, there is no coverage for loss or damage resulting from scratching, marring or breakage. However, such losses are covered if caused by the following:

· Aircraft, self-propelled missiles, falling objects

· Building collapse

· Earthquake

· Flood

· Fire (including smoke) or explosion

· Lightning, wind, or hailstorms

· Sprinkler damage (leaks)

· Strikes, riots or civil disturbance

· Theft

· Vehicles

Other sources of loss or damage to gifts that are ineligible for coverage include electrical currents (exception for lightning or resulting fire), mechanical breakdown, theft from an unattended (unlocked) vehicle, nuclear activity, or war.

Jewelry Coverage

This coverage (when a limit appears for it on the declarations) covers jewelry acquired for the covered event and which is worn by the insured and/or the honoree. Naturally, such coverage is subject to the stated limit and applies to jewelry that the covered parties either own or which is rented for the covered event.

Example: Joshua and Typhania file a claim with their wedding insurer. An emerald necklace was stolen from Typhania when she left the bride’s dressing room for a few minutes. The insurer declines the loss when they discover the brooch was borrowed from a friend to wear at a parent’s anniversary party that took place two months earlier.

Losses are settled on a replacement cost basis and the maximum payment is subject both to the value of the lost or damaged property and the applicable insurance limit (whichever is the lower amount). When damage or loss occurs to a piece of property that is part of a pair or set, the insurer has the option to settle according to the property’s pre-loss value, but the surviving property has to be surrendered to the insurer.

Jewelry Exclusions

Sources of loss or damage to jewelry that are not covered include theft from an unattended (unlocked) vehicle, wear and tear, gradual deterioration/inherent vice, nuclear activity, or war.

Photographs and Video Recording Coverage

This portion of the policy provides a limited amount of protection for loss of wedding pictures and video footage. However, the coverage only applies to photos and footage taken by professionals. Amateur shots and videos do not qualify for protection. The available coverage is subject to the insurance limit that appears on the policy’s declarations. In the event of a number of circumstances, this coverage will pay to have pictures or videos made of the special event. Coverage applies in the following instances:

The photographer or videographer does not show up to the event
The original tape or footage fails to develop, is damaged or destroyed
The original tape or footage is damaged or destroyed

Expenses eligible for coverage/reimburse include the cost to rent the facility (as a setting) transportation, meal and lodging costs for honorees, attendants and immediate family, cost to rent gowns, dresses, tuxedos, reimbursement mileage for persons driving back for replacement photo/video session, cost to buy or rent cake and flowers to re-stage the event, costs to re-hire a photographer or videographer.

Note: Travel, meal and lodging costs are stated on a per person basis.


Example: Andy and Paula’s wedding photographer calls several days after the wedding. He was in an auto accident on the way back from their wedding and all of the pictures he took there were destroyed. The couple rushes to gather everyone again to re-stage the wedding in order to get new photos and film. The wedding policy purchased by Paula’s parents listed the following (the column next to the limits are the actual re-staging expenses):
Photographs and Video Tape Coverage
Coverage	Limit	Actual Loss
Total Coverage Limit	$15,000	$20,800
Special Attire Limit	$300 per person/$5,000 max.	Avg. $330 per person/$6,600
Meal/Lodging Limit	$250 per person	Avg. $210 per person/$5,200
Mileage/Travel Reimbursement	.045 per mile/$500 per person max	Avg. $375 per person/$9,000
Totals		$15,000 Reimbursed
In this case, the photo coverage helped immensely, but Paula’s parents still suffered a large expense ($20,800 - $15,000 = $5,800) due to the policy’s sublimits and having a large number of event participants who were at remote locations.

Exclusions – Generally, the coverage will not apply when photo and/or video loss is due to nuclear or military activity, moisture/rot/mold, insects/animals/bugs, normal wear/tear, confiscation of property or (for videos) when the audio quality is sub-standard.

Note: This coverage only applies to pictures and footage taken by professionals. Loss of amateur photography or footage (even if it is the only source of visual documentation of the event) is NOT eligible for protection.

Rented Property Coverage

This portion of the policy provides a limited amount of protection for loss of property that is rented by the insured or the honoree when such property is in those parties’ care, custody, or control. Further, the property must be related to facilitating the covered event. The maximum coverage (either replacement or repair) for a single item of high-valued property is $1,000. To qualify for additional coverage, such high-priced items must be specifically described (scheduled) under this coverage. Such items must also be accompanied by an assigned value.

Rented Property Exclusions

Sources of loss or damage to rented property that are not covered include mechanical or electrical breakdown, theft from an unattended (unlocked) vehicle, wear and tear, gradual deterioration/inherent vice, third party loss of income, dish4onest acts (by insured or honoree), mysterious disappearance, insured’s neglect, nuclear activity or war.

Note: For breakdown-related losses, there is coverage if subsequent fire or explosion damage occurs.

Special Attire Coverage

This coverage responds to loss or damage to clothing that the honoree and attendants acquire for wearing at the covered event. Settlement is based on replacement cost of the property and, if the same property is unavailable, the insurer can fulfill its obligation by finding similar, comparable property.

Example: Suellen has a wedding policy which includes Special Attire coverage for $5,000. She asks her kid brother to go pick up her bridal gown from a dressmaker. Her brother does so, reluctantly. When he pulls into the driveway, he notices Suellen screaming and then fainting. When he gets out of the car, he sees that half of the gown had been hanging out of the door and was destroyed. The dressmaker says that the dress was a custom design that she can’t replace in time for the wedding that was to take place in a week. However, she does have a similar design that she can alter for $3,900. Suellen’s policy will handle this loss.

Special Attire Exclusions

Sources of loss or damage to special attire that are not covered include theft from an unattended (unlocked) vehicle, wear and tear, gradual deterioration/inherent vice, nuclear activity, or war.

Limits of Insurance

The policy states that all payments that qualify under the policy are subject to the applicable limits and, for a given occurrence, the payment maximum is not affected by the fact that more than one claimant, insured, losses or lawsuits are involved. Further, if applicable, the losses paid under the policy during the stated policy period are subject to the policy’s aggregate limit.

Deductible

As applicable, loss payments are all subject to any deductible that appears under any separate coverage provided by the policy. If only one deductible is listed, that amount applies to payments made separately under any applicable coverage.

When a coverage is subject to a deductible that deductible is entered on the Declarations. Any applicable deductible applies per occurrence. When multiple coverages apply to a single event, all applicable deductibles also apply that event. Some policies may provide a single occurrence deductible or a maximum occurrence deductible when multiple coverages apply to a given postponement or cancellation.

Loss Conditions

The policy obligates the insured/honoree to a number of conditions in order to handle an eligible loss. As is the case with other lines of business, a failure to comply with requirements could endanger the insured/honoree’s right to recovery. Typically, the insured/honoree has to do the following:

1. Notification and Duties – the insured or honoree must:

· Quickly notify the insurer and, if appropriate, legal authorities about a loss

· Protect property from additional damage or loss

· Put in a good faith effort to arrange for alternate sources of goods/services if a provider fails to perform as contracted

· Put in a good faith effort to arrange for alternate sites to host the covered event or related activity

· Provide the insurer with a sworn loss statement no later than 60 days from the date of loss, including inventory of property involved in the claims, copies of documents that substantiate their value and all relevant details about the loss circumstances

· Put in a good faith effort to arrange for alternate special attire to wear at a covered event

· If bodily injury to a participant triggers a need to postpone or cancel an event, the injured party must seek qualified help, must adhere to instructions provided by medical personnel regarding recuperation from the injury and must agree to the insurer’s reasonable request to have separate examinations performed

· If a loss or injury results in a fatality, the insurer reserves the right to make a post-death examination

2. Loss Payment

This is an insurer obligation. Once either the insurer has agreed with the applicable party suffering the loss or an arbitration decision has been made (and filed), payment must be made within 30 days. The insurer will handle payments according to the insurable interest that is documented in the policy.

3. Appraisal

If the insurer and the named insured or honoree do not agree over the value of the covered property or the amount of the loss, each party (after receiving a written request from the other party) may select an appraiser. The two appraisers will select an umpire.

If the two appraisers agree in writing, that sets the amount of the loss. However, if they do not agree, the differences are submitted to the umpire and then the written agreement of any two of the parties sets the amount of loss. The decision is binding on all parties. Each party will pay its appraiser and the two parties will share the cast of the umpire and related expenses equally.

Note: An appraisal is about the amount of an eligible loss, not whether or not coverage applies. Also, there typically is no mention of time limits for completing the appraisal process.

4. Right to Settle

When lost or damaged party involves property that is borrowed or rented from others (including jewelry), the insurer has the right to settle the loss directly with the property owner and such payment is deemed to satisfy its obligation to the insured/honoree.

5. Abandonment

The insurer is not obligated to accept custody of property that has been abandoned by an insured or honoree.

PRIVATE EVENT CANCELLATION INSURANCE LIABILITY COVERAGE

Coverage

Personal Liability

When this coverage applies (as indicated on the declarations), the insurer has the obligation to protect the insured against losses or lawsuits that allege that the insured/honoree is responsible for bodily injury, personal injury or property damage to a third party. However, any claim must be due to an incident that occurs at the covered event and within the applicable policy territory. The coverage obligation does not only apply to losses, but also includes a duty to legally defend an insured/honoree against claims/losses. Either a settlement or the exhaustion of the applicable limit ends the insurer’s duty to provide a legal defense.

Example: The Brydals are sued by a best man who was seriously injured when the nervous groom turned abruptly to get the wedding ring and knocked the best man off a podium.

Personal Liability Exclusions

This portion of the policy does NOT respond to losses that involve any of the following:

· Aircraft, Watercraft or Vehicles (including allegations of vicarious responsibility)

· Injury suffered by the insured or honoree

Example: The wedding was beautiful, but the reception left much to be desired. The bride’s parents were sued by the groom’s best man. The best man attempted to escort a former boyfriend of the bride (who crashed the event) from the reception. As he did so, the best man tripped over some cables (used by the wedding band), fell, and suffered broken facial bones. This was an eligible loss because the wedding party made no arrangements to guard against crashers and the best man was not an insured or honoree.

· Athletic Activities

Example: The Brydals are having a bad day. After returning from their honeymoon, they get a notice of a lawsuit in their mail. A friend was seriously injured during the pick-up flag football game that was held during the wedding reception. This loss is ineligible for coverage.

· Liquor Liability - however this only applies when the insured/honoree are in the business of making, selling, distributing, or furnishing liquor

· Other premises than the covered event’s location (unless the declarations lists the other premises such as a separate reception location)

· Nuclear Activity or War

· Incidents either covered by or eligible for Workers’ Compensation Coverage

· Fines or Penalties

· Property in the Care, Custody or Control of the Honoree or Insured

Exceptions for property damage typically applies to guest property (including their vehicles), or to property belonging to the premises rented for the covered event. An exception may also apply to non-owned, parked vehicles for which the honoree or insured may have a legal obligation.

· Property that is Sold or Rented by the Honoree or the Insured, including jewelry, rented property and special attire.

· Damage or Injury that an Insured/Honoree Expects or Intends

Note: An exception is granted for incidents involving protecting oneself, another person or another person’s property from the deliberate actions of others.

· False Statements Made with Insured/Honoree’s Knowledge of Falsity

Example: The groom is guilty of a silly act of revenge during his wedding reception speech. He tells a former girlfriend and the rest of the attendees that “she probably regrets that she let him get away because her current husband frequently cheats on her.” He knows the statement is a lie. When he’s sued, his wedding policy will not respond to the lawsuit.

· Statements Published Prior to the Policy’s Inception

· Deliberate Violation of Laws or Statutes

Applies to incidents involving the insured or the honoree or to incidents done with the knowledge of the insured or honoree.

Medical Payments to Others

This coverage applies to incidents of bodily injury that occur to persons other than the insured or the honoree and if they occur at the covered event. It pays for a wide variety of expenses connected to treating an injury, such as the cost of providing first aid, x-rays (or other scanning), transportation by ambulance, and similar expenses. However, besides occurring at the described event, to qualify for coverage the incident has to be reported within a year of the accident date and the injured person must agree to the insurer’s reasonable requests to undergo physical examinations (by physicians chosen by the insurer).

Example: Using a previous scenario shows how valuable Medical Payments coverage can be. Again, the Brydals are, initially, threatened to be sued by a best man who was seriously injured when the nervous groom turned abruptly to get the wedding ring and knocked the best man off a podium. The Brydals quickly call an ambulance and the best man is quickly and successfully treated onsite. The best man cools down and does not sue.

Additional Payments

Typically, related to the policy’s existing liability coverage, the form may also include the following protection that does not affect what is available under the stated liability policy limit:

1. Settlement and Defense Costs – covered expenses include post-judgment interest

2. Appeal and attachment bonds premiums

3. First aid expenses

4. Other reasonable expenses which the insured or honoree pays at the request of the insurer

5. Loss of earnings due to trial attendance or participation in other activities at the request of the insurer. This coverage is limited to a specified, daily maximum that appears in the policy.

Limits of Insurance

The policy states that all payments that qualify under the policy (bodily injury, property damage and personal injury) are subject to the applicable liability limit and, for a given occurrence, the payment maximum is not affected by the fact that more than one claimant, insured, losses or lawsuits are involved. Further, any payments made under the form’s medical payments provision are subject to the separate limit that appears for that coverage.

Loss Conditions

· Quickly notify the insurer in writing about a loss which includes insured’s and honoree’s address and other identifying information, complete date, time, location and loss circumstances, names and addresses of all persons who may have a claim to make against the insured or honoree, names and addresses of witnesses

· Immediately forward all paperwork and materials received in connection with a claim or lawsuit to the insurer

· Fully cooperate with the insurer with all matters connected with the claim or lawsuit, including pursuing rights of recovery against other parties who may bear responsibility for the applicable loss, attending trials and hearings, collecting evidence, giving testimony and assisting with the attendance of witnesses

· When applicable, the insured and involved parties must agree to contact and cooperate with legal authorities

· Other than providing first aid, neither the insured nor the honoree should offer to voluntarily pay for losses claimed by other parties unless they do so at their own expense

Note: Insurers frown upon expenses made out-of-pocket by the insured because it could prejudice the insurer’s right to determine liability (be construed as an admission of liability).

Conditions

Age and Residency

Coverages under this form are valid only for weddings involving a bride and groom who are both, at least, 18 years of age and who are also permanent residents of the United States.

Assignment of Policy

No insured or other party can sign this policy and its coverages over for use by any other party unless, first, getting the insurance company’s permission (in writing).

Bankruptcy

Bankruptcy or insolvency of an insured does not relieve the insurance company of its obligations under this policy.

Cancellation

This policy may be canceled by the insured by returning the policy to the insurance company or by giving the insurance company written notice that states at what future date coverage is to stop. However, the cancel request must occur before the applicable event’s scheduled date and without a claim having occurred.

The insurance company providing coverage may cancel this policy by written notice to the insured at the address shown on the declarations. Proof of delivery or mailing is sufficient proof of notice.

The insurer may only cancel coverage for nonpayment of premium or due to either the honoree or the insured having concealed or misrepresented information regarding this coverage.

Important: In certain instances, parts of this provision may be pre-empted by state law regarding cancel reasons, amount of notice and proof of delivery.

If any return premium is owed, it will be refunded at the time of the cancellation or as soon as is practical. Payment of the unearned premium has no bearing on cancellation.

Note: Return premium may be based on how long the cancel request precedes the covered event. A short rate return is likely if requested more than 30 days before the event. No return is likely if the request is sooner than 30 days before the event.

Concealment or Fraud

Any intentional concealment or misrepresentation on the part of the insured or the honoree may void the policy’s coverage.

This provision supports the fact that an insurer should be able to rely on the statements made by the insured (or honoree) in making its decision to insure a person or property. If the statements are seriously in error, the insurance contract has no right to exist and the company has no obligation to honor it.

Conformity to State Statutes

Policy terms that conflict with the laws of the state in which the event shown on the declarations is located, are changed to conform to such laws. This provision is rarely relied upon since amendments or endorsements are added to policies to match the state where the policy is used. However, there are instances where the condition may be applicable.

Coverage Changes

Only the insurance company has the option of waiving or changing this policy’s terms. In order for a waiver to be effective, it must be in writing and attached (endorsed) to the policy.

Legal Action against Us

Neither the insured nor the honoree is permitted to file suit against the insurer without the amount of the insured’s or honoree’s liability having been determined by either of the following:

A final judgment against the insured as a result of a trial
A written agreement between the insured, the claimant, and the insurer.

Note: No person has a right under this policy to join the insurance company or to speak for the insurance company in actions related to determining the amount of an insured’s liability.

Other Insurance

Depending upon the source of coverage that is available (in addition to this policy), the policy may respond to the loss on either a proportional or an excess basis.

When there is other insurance that applies to the loss, the insurance company providing coverage under this form is only obligated to pay its share of the loss. This policy’s share is based upon the portion of coverage it provides in relationship to the total amount of coverage available from all sources of coverage, which apply to the loss.

Records

The insured must support applicable claims with documents, bills of sales or receipts that help to establish the amount of a claimed, eligible loss. The insurance company must be provided access to any, relevant documents.

Transfer of Rights of Recovery against Others to Us

When an insurer pays damages, it may ask the insured and/or the honoree to transfer his or her right to attempt to recover damages from another party. The insured must agree to do so and to fully cooperate with the insured in pursuing the recovery. This act of seeking payment from a party responsible for a loss is called subrogation. This right is valuable to an insurer. In fact, if an insured hampers this right to recover payment after a loss has occurred, the insurer may no longer be obligated to pay for the loss.

Note: Unlike other lines of business, there does not appear to be the usual option of permitting the insured to seek a written waiver.

The absence of this option appears logical when you consider the typical number of persons and business entities that may bear significant fault for a cancelled or ruined event. It is likely a high priority to maximize the ability to recover amounts from other parties.

Privacy Agreement

Some policies may include a provision concerning protecting the wedding party’s privacy. Much of the information concerning the policy, application and claims may be quite sensitive, such as financial agreements and medical or health information. Under this provision, the insurer agrees to act in a manner that respects confidentiality with regard to the information it uses, accesses and, if necessary, discloses to other parties. You may recognize how this might be particularly important for high-profile weddings.