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The credit crunch is causing an increasing number of wedding days to be ruined due to hotels or suppliers going bust in the downturn, according to wedding insurance specialist Voyager, part of independent underwriting and broking group Somerville.

Voyager has also warned that couples’ misfortunes could be further compounded because some wedding insurance policies do not cover last minute cancellations due to the financial failure of the two key components - the venue or the caterers. For example, if the hotel where the wedding itself and/or the reception is to be held suddenly shuts it doors there is often no viable alternative available for the same day. Unfortunately in these circumstances lost deposits may not be insured for a high enough amount or at all.

In addition for a claim to be considered the supplier must have actually been declared insolvent and ceased trading, not merely been put into administration.

Fortunately if one of the less critically important suppliers should fail, such as bridal attire, florists or wedding car rental, alternative arrangements can usually be made, even at the last minute, to avoid having to postpone the big day.

Voyager director Jonathan Buttery said: "There is growing concern amongst engaged couples about what will happen if a key wedding supplier goes bust; naturally they want to know they can claim if problems occur. As a result, the vast majority of enquiries we are now receiving prior to the purchase of wedding insurance are about this part of the cover as clearly substantial sums are at stake."

He concluded: "It’s also important to buy insurance cover before putting down deposits.  We recently became aware of one wedding dress shop that obviously knew it was about to close down and recommended that their clients took out a policy when it was clearly too late."

"I therefore find it amazing that there have not been more scandals about hotels and other suppliers failing with people losing large amounts of money as a result.  There is no statutory regulation for bonding or other protection of customers' money in this area despite the fact that the deposits and pre-payments can be several thousands of pounds."

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