In light of the recent bankruptcy issues at the Art Factory in Paterson this week, leaving hundreds of couples stranded with no venue and out thousands of dollars, it’s only natural for engaged couples to be thinking, “What if this happens to me?” (If you’re an Art Factory couple in search of a venue, join Molly’s New Jersey Wedding Insiders for a list of venues with open dates).
Bankruptcy, unexpected closures, fires, floods, vendor no-shows, illness and unscrupulous business owners are just some of the disastrous things that could happen to upend your event, with thousands of dollars lost, dreams dashed and sheer panic taking over. Unfortunately, it happens more often than you’d think.
So how can you protect yourself from the nightmare of a venue or vendor going out of business or unexpectedly not being able to host or work at your wedding? Here are some steps you can take to avoid this scenario—or at least ease the pain if you find yourself in this situation.
Wedding insurance
Buy it. There are two types: cancellation insurance and liability insurance. Liability covers you if anyone gets injured or there is damage caused by guests or vendors at your event. Cancellation covers you for circumstances beyond your control that force the cancellation of the wedding, including severe weather, bankruptcies, injury or illness of a person integral to your wedding, no-show vendors, etc. Both are relatively inexpensive compared to your total wedding investment, and cancellation insurance would refund all of your monies if a venue or vendor declares bankruptcy.
“If you are engaged and working through your wedding plans, please, please plan and be strategic about what you do with your hard-earned money,” advises Kasia McManamon of June Beri Events. “You do not want to be in a similar situation when your day comes and there is little myself and other planners will be able to do to help you after a blow-up of this caliber.”
McManamon recommends purchasing wedding insurance from The Event Helper. Other options include: Eventsured, WedSafe, Wedsure, Traveler’s and Allstate. Shop around for the lowest rates and greatest amount of coverage—even inquire with your homeowner’s or renter’s insurance company, where you may receive a discount. “The biggest kicker is that wedding cancellation insurance is about $500 or so,” McManamon adds. “These couples stand to potentially lose $100,000 if not more. Why on earth wouldn’t you take out the protection?”
Pay by credit card when possible
While it may seem counterintuitive to put wedding deposits on a credit card, always pay by credit card if accepted—even if there’s a fee. If the venue or vendor goes out of business, you can dispute the charges with your credit card company and get your deposit back. It’s like your own mini insurance policy. You have no recourse if you pay by cash. There’s also the added bonus of receiving points or miles if you use the right travel card. It adds up quickly and can be used toward your honeymoon. Then pay off the balance each month. Same as paying cash…but you have protections should anything go wrong. I know not all vendors accept credit cards and most venues only allow the initial deposit on a credit card, but use it whenever possible.
Contracts
You need a contract for every vendor you hire. If anyone tells you, “Oh, we’re good, I stand by word,” do not do business with them. A contract protects both you and the vendor, and every legitimate business will give you one. Each contract should list event date, time, venue, services provided, deposit, balance due, payment due dates, cancellation policy. And if it’s not stated in the contract, don’t count on it happening. You not only need a contract, but you need to carefully read it. Check for cancellation clauses that detail what happens if a vendor can no longer fulfill their obligations. Ideally, the contract should ensure a refund or alternate solution in the event of business closure or significant disruption.
Also look for force majeure and Covid clauses. A force majeure clause protects vendors and clients if unexpected disasters—such as natural disasters or other unforeseeable events—occur. Ensure that the language includes specific provisions about the vendor’s responsibilities if they are forced to cancel or close their business.
Then, not only sign the contract, but make a copy for safe-keeping. You may need to refer to this contract multiple times before the day of your event, especially if things start to go wrong.
Don’t pay in full or make early payments
Don’t pay make any payment earlier than you’re contracted for, even if they offer a discount! Again, this may seem counterintuitive if you’re trying to budget and spread out costs over a period of time. But this reduces the risk of paying in full and then losing money if the business closes. If you want to pay monthly for budgeting purposes, set up a separate bank account and pay yourself. Then pay out of this account according to the contract payment dates. Most vendors require a deposit upfront, with a few additional payments due closer to the wedding date.
Hire established, reputable vendors
While startups or new businesses may offer enticing discounts or trendy options, it’s often safer to work with established vendors. Especially for key elements like your venue, photographer, music or caterer. Experienced vendors with a long track record are more likely to have a solid business foundation and contingency plans in place, making it less likely they’ll disappear before your wedding. Ask how many years of experience they have in the wedding industry. Look at portfolios and speak with past clients to verify their experience. If a vendor consistently delivers high-quality work over many years, it’s a good sign that they’re likely to be around for your wedding. Read reviews—but beware of those on the Knot or Wedding Wire, since they can be manipulated and deleted. Look at Google reviews and reviews from other couples in Facebook groups such as Molly’s New Jersey Wedding Insiders, where you’ll find uncensored, real-life opinions you can trust.
Work with an event planner
While this is a service that not all couples think they can afford, there are many reasons why working with an event planner will either alleviate or avoid a bad situation entirely—making this a vendor you can’t afford to not hire! Your wedding planner will not only know reputable vendors who consistently deliver a high-quality product, lowering the chance of problems in the first place, but they’ll also be able to jump into action should anything go wrong.
“When something like this happens, it’s no surprise that couples will feel the incredible disappointment and anxiety that comes with it,” explains McManamon. “As a planner we’re equipped to deal well in crisis and help you navigate the steps to take. On top of that we have endless resources to venues and vendors who will gladly work with us to quickly salvage a couples wedding plans and course-correct.”
“It’s about the connections,” adds Danielle Rothweiler of Rothweiler Event Design. “You’re paying for a Rolodex, with curated recommendations for each couple. And if a venue closes down, it’s important to have a planner on your side who has connections with other venues. You hire a planner because they’re going to call around, know your guest count, know what you need, and ask all of the right questions.”
“Planners also take the emotion out of it,” Rothweiler adds. “They’re going to find you the best vendors, versus a couple who’s going to be hysterical trying to do this on their own. And at the end of the day, venues and vendors will pick up our phone call faster than they’re going to pick up a phone call from a random couple.”
Keep an eye on your vendors
Even after booking your vendors, continue to monitor their stability. Stay in touch with them throughout the planning process and check for any red flags that may indicate trouble. If a vendor becomes difficult to contact, starts missing deadlines or goes dark on social media, it could be a sign of financial instability. Keep an eye on local news, since closures, bankruptcies or other issues often make headlines. If you hear of a vendor facing difficulties, it may be time to consider a backup plan.
But even with all the planning in the world, there’s always a chance that something could go wrong. Thorough research and thoughtful risk management, however, will help protect your investment. And following just one of these tips can go a long way to avoiding disaster.
**If you’ve been personally affected by The Art Factory bankruptcy, reach out to me directly at molly@weddingfile.com and I can help connect you with other venues and vendors.
