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Important points about wedding cancellation insurance coverage

With wedding season in full swing here in Louisiana, most couples are arguably concerned about making sure dresses are completed and fitted correctly, that photographers and wedding coordinators are on the same page, and that their wedding venues will be all that they were promised.

With the multitude of things to keep track of, wedding insurance is often overlooked. Indeed, most wedding venues require parties to purchase some form insurance to guard against liability if a guest is hurt or destroys property, or unforeseen instances that require the wedding to be cancelled.

For those who cover cancellation insurance, a number of questions may arise as to whether a claim should be honored. This post will highlight a few.

What does the plain language cover? – The definitions section is quite possibly the most important aspect of an insurance contract. Definitions of obvious and ambiguous terms can mean the difference between paying out on an invalid claim and being accused of insurance bad faith on a legitimate claim.

How are the terms acknowledged? – Covered parties must demonstrate their knowledge and agreement to the terms in an insurance contract. If it can be shown that parties did not fully understand the product they purchased, this could lead to additional legal issues.

How are disputes resolved? – Disagreements about whether a claim should be covered should be clearly disclosed, whether it is through binding arbitration, mediation or via civil suit.

If you have questions about how cancellation insurance contracts should be drafted or administered, an experienced insurance law attorney can advise you.

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