Wedding Insurance Claims Rise as Vendors are Failing Customers

By International Desk: Vendor failures have emerged as the dominant reason behind wedding insurance claims in the United States, accounting for more than half of all paid claims for the fifth consecutive year. According to data released by Travelers, these failures represented 55 percent of payouts in 2025, marking a sharp increase from approximately 27 percent the previous year. This trend highlights the growing vulnerability of wedding plans to disruptions caused by vendors, ranging from photographers and florists to caterers and venues that unexpectedly close, declare bankruptcy, or fail to deliver services after deposits have been paid.

The broader context reveals why these issues have become so prevalent. Illness or injury to the couple or key participants accounted for 16 percent of claims, while extreme weather contributed to 10 percent. Accidental damage or injury made up 6 percent, and military deployment represented 3 percent. Yet vendor-related problems continue to overshadow these other risks, reflecting deeper economic pressures on the wedding industry. Many vendors are small businesses operating with thin margins, making them particularly susceptible to rising costs, high interest rates, and tightening credit conditions.

This data comes at a time when weddings carry unprecedented financial weight. The average cost of a U.S. wedding reached $34,200 in 2025, based on The Knot’s 2026 Real Weddings Study, which drew from surveys of more than 10,000 couples married the prior year. That substantial sum is typically spread across numerous vendors, often with significant deposits required months or even years in advance. When a single vendor fails to fulfill their obligations, couples can face substantial unrecoverable losses, turning what should be a joyful celebration into a major financial setback.

Deidre LeBlanc, vice president of specialty lines for personal insurance at Travelers, emphasized the value of learning from others’ experiences when planning such high-stakes events. She noted that couples invest tremendous time, energy, and money into creating their perfect day, making proactive preparation essential. Understanding common pitfalls that have affected previous weddings allows couples to better safeguard their plans, while appropriate insurance coverage offers peace of mind against unforeseen disruptions.

The rise in vendor-related claims does not exist in isolation. U.S. business bankruptcies have climbed steadily, with the third quarter of 2025 recording 6,574 filings—the highest level since 2014 and 15 percent above the 2019 average. Commercial Chapter 11 filings also surged 67 percent year-over-year in early 2026. Small operators, which form the backbone of the wedding services sector, feel these strains most acutely. Factors such as inflation, labor shortages, and post-pandemic recovery challenges have compounded difficulties for many businesses, increasing the likelihood that they might cancel events or cease operations entirely.

Despite the heightened risks, wedding insurance remains underutilized. Only about 30 percent of couples purchase such policies, according to the National Association of Insurance Commissioners. This leaves the majority of the roughly two million couples who marry in the U.S. each year exposed to full financial responsibility for potential vendor failures, weather issues, liability concerns, or other disruptions. The relatively modest cost of basic wedding cancellation policies often stands in stark contrast to the substantial protection they provide, suggesting a significant opportunity for greater awareness and adoption among soon-to-be-weds.

The insurance industry itself is responding to this evolving landscape. The wedding liability insurance market expanded from $696 million in 2025 to an estimated $731 million in 2026, with projections indicating growth to $1.06 billion by 2032. The broader special event insurance sector shows similar momentum, valued at $5.5 billion in 2024 and expected to reach $10.2 billion by 2033 at a compound annual growth rate of 7.3 percent.

These figures underscore how financial protection is gradually becoming a more standard consideration in wedding planning, even as many couples still overlook it until problems arise.