Cancellation Insurance – Unraveling Sub-Limits

Planning a wedding can be exciting, but unexpected problems can arise. eWed’s wedding cancellation insurance helps protect you from these unexpected expenses. Here’s how it works and why it’s important.

What is Wedding Cancellation Insurance?

Wedding cancellation insurance helps cover unexpected expenses if things go wrong, like your photographer canceling, the catering company going bankrupt, or needing to change plans last minute due to extreme weather. This insurance helps keep your budget on track, even if something unexpected happens.

That's where eWed's wedding cancellation insurance steps in, ensuring your dreams remain intact, even in the face of unforeseen challenges.

What are Sub-Limits?  Cancellation insurance policies have a main coverage amount (e.g., $10,000, $15,000, $25,000). Sub-limits are smaller limits within the main coverage that apply to specific issues, like a vendor not showing up. If the wedding is canceled or postponed, sub-limits no longer apply and you have the full policy coverage amount to use towards any lost funds.

  • Main Coverage Amount:This is the total amount your policy can pay out.
  • Sub-Limits:These apply to specific issues when the wedding isn’t canceled but a vendor problem arises.

Example Sub-Limit Categories

  • Extra Expense
  • Photo & Video
  • Gifts
  • Special Attire
  • Special Jewelry
  • Loss of Deposit
  • Professional Counseling

The Loss of Deposit category covers vendor deposits that are not covered by one of the other more specific categories.

Here is what they typically look like for a $15,000 cancellation policy.

Policy Coverage Amount

Extra Expense

Photo & Video

Gifts

Special Attire

Special Jewelry

Loss of Deposit

Professional Counselling

$15,000

$15,000.00

$1,500

$1,500

$1,500

$1,500

$3,000

$650

For example, a $15,000 policy might have a photography sub-limit of $1,500, meaning if you paid your photographer a $2,000 deposit, the policy would reimburse you for $1,500. However, if you had to cancel or postpone your wedding due to severe weather, then the policy could pay you the full $2,000 for the photographer. Another example could be your florist calls you up and tells you they are bankrupt, and your $2,500 floral deposit is gone. This could be covered under the sublimit “Loss of Deposit”. The Loss of Deposit category is a catch all category for any deposits you paid that are not included in the other specified sub limit categories.

Extra Expense Coverage

Extra Expense, is roughly defined as an amount you would need to spend to avoid an otherwise larger loss. What does that mean? Let’s say for example, your caterer has a fire in their kitchen the week before your wedding and you need to scramble at the last minute to find a replacement caterer. You paid your original caterer $5,000 (above the Loss of Deposit amount) and the last-minute replacement caterer can step in but there is a $1,000 rush fee in addition to the $5,000 for catering services.

Extra Expense could cover the full $6,000 because without a caterer, you would be justified in postponing the entire wedding which could result in a loss for the full $15,000. Extra Expense pays the increased amount because if they didn’t you would cancel the entire wedding due to not having a caterer.

The gray area for extra expense comes into play if a non-essential vendor bails on you (e.g. you could have your wedding without a DJ or photographer but definitely not without any food or beverages). Unfortunately, gray area questions can’t be answered in a blog, sorry. These have to be answered on a case-by-case basis.

eWed’s wedding cancellation insurance protects you against unexpected challenges. It helps cover costs from vendor issues and ensures your wedding can proceed smoothly. This insurance gives you peace of mind, allowing you to focus on enjoying your special day.

Other Resources