The special event insurance market was valued at approximately $1.5 billion in 2023 and is expected to reach $3.2 billion by the end of 2030, according to Verified Market Reports. This niche market continues to expand as people look to magnify the scope and complexity of the events they are hosting.

In no area is this more obvious than the wedding industry, especially during the holiday season when couples are looking to blend romance with the joy and excitement of the season. Holiday weddings are often considered to be enchanting and romantic events. However, planning or holding a wedding during the holiday season comes with its own set of challenges.

As many people know, planning a wedding at any time of the year can be stressful. Meanwhile, the holiday season brings additional pressure. Many couples select venues that embrace the holiday spirit. Some may include winter wonderland experiences, provide hot drinks of the season, or areas to enjoy holiday crafts. These unique events also bring weather-related risks, vendor issues— including failure to deliver as promised—and third-party risks, which can be covered through special events coverage.

For most weddings, creativity is the name of the game as couples look to find ways to make their event uniquely theirs. From themed weddings that pay homage to a couple's favorite TV show to adventure weddings that include hiking, drones or even cooking events at a wedding reception, the world of weddings continues to evolve. The special events insurance market has taken notice.

“Weddings are becoming bigger than ever, with weekend-long celebrations and lavish destination events," says Spencer Batt, president, American Specialty Insurance & Risk Services Inc., part of Arrowhead Programs. “In addition to the customary rehearsal dinner, elaborate welcome parties have recently become the standard. Couples are thinking outside the box with details and experiences to wow their guests. Wedding insurance leaders have responded to these changes by offering coverage for weddings that extends beyond just the wedding day."

Couples are continually moving away from traditional wedding formats and are looking to hold an event that reflects their personalities and values, which means insurance must be customized to suit or the insured needs to be notified that they are venturing into territory where insurance does not apply.

“Coverage requests include home-front weddings where the wedding takes place on a porch and the reception is held in the backyard; elevated fashion weddings with glamorous and expensive high-end gowns, gloves and accessories; petting zoos for guests; fireworks; increased interest in wedding rentals, including the wedding gown; live art events where an artist paints the wedding and reception as it occurs; outdoor weddings in parks and scenic areas; and guest shuttle services for weddings held on large venues," says Lorena Hatfield, marketing resource manager, K&K Insurance.

“Many of these trends create unique insurance challenges and some may be excluded from liability coverage entirely, so agents need to ask for details of the event and explain what may or may not be covered to their clients before purchasing coverage," Hatfield says.

“Event liability can help protect against property damage, or if someone is injured at your wedding," says Sam Peterson, event senior product manager, Markel. “An insured can purchase an event liability policy at least one day prior to the event."

An event cancellation policy can help protect an event's budget against disruptions like extreme weather, vendor bankruptcy or military deployment. “It can also help with reimbursing the host for things like nonrefundable deposits," Peterson says. “Event cancellation coverage must be purchased at least 15 days prior to the event date and can be purchased up to two years in advance."

For the venue itself, while it maintains its own insurance policy, “coverage purchased by the couple will ensure that the venue is not getting crushed if they have three claims a year and get dropped by their carrier," says Greg Esterhai, CEO and co-founder, Eventsured. “They might have three issues, but the policies that are picking up those issues are the special event policies."

Olivia Overman is IA content editor.