Does wedding insurance cover vendor bankruptcy?

Vendor bankruptcy is a common reason couples claim on wedding insurance. If your caterer, photographer, or venue goes out of business before the wedding, the policy can pay back the money you lost, up to the limit in your policy. However, cover is not automatic. You must check that the policy includes 'supplier failure' or 'insolvency' as a named risk. Some policies exclude it, or only cover it if the supplier is a member of a trade association. Also, if the supplier is a sole trader who simply stops trading without formally going bankrupt, that may not be covered. You should also know that if the supplier is replaced by another company, the insurer may not pay out. To protect yourself, pay deposits with a credit card where possible, because you may have extra protection under consumer law. Keep all contracts and payment records. If you hear rumours about a supplier's finances, act quickly and contact your insurer before the wedding. The rules around consumer protection can change, so check GOV.UK for current guidance on your rights when a business fails.