Context
FOS has published guidance for consumers on how to avoid problems with Wedding Insurance and how it can help in the event of unfair treatment. Four examples of cases FOS has seen and resolved are shared.
Key points to note and next actions
Firms should consider the top tips shared by the FOS in their dealings with customers, by ensuring relevant information is shared with them and clarified where necessary. While the guidance is focused on Wedding Insurance, there are elements that can be applied to all insurance policies.
FOS top tips:
- Explain what is covered – ensure customers are aware of the key elements of cover, such as cancellation, supplier failure and public liability.
- Highlight key exclusions – some policies may not cover inability to travel to the wedding venue for reasons other than weather, destination nuptials, or pre-existing health conditions.
- Ensure a full understanding of the direct and indirect suppliers for the wedding – Confirm to customers which suppliers are covered by the policy and those that are not covered. If the supplier is paid by a wedding planner, those costs might not be covered.
- Ensure adequate cover for all overall costs – ensure the total amount of cover matches the overall cost of the wedding, from venue hire and catering to attire and photography.
- Where possible, encourage customers to purchase the policy early – many couples mistakenly think they can wait until closer to the big day to take out insurance. This puts them at risk of unexpected events such as the venue closing down.
- Explain the customers’ responsibility to try to recover costs – as insurers expect people to mitigate their losses where possible, they will need to show they have tried and failed to recover costs before the insurer is likely to step in.