Bankruptcies leaving some brides stranded at altar

BOSTON – Paula Fleming knows the pain of being a bride left stranded at the altar.But her story isn’t about jilted love. It’s strictly economic.As vice president of communications for the regional Better Business Bureau (BBB), she hears horror stories from ripped-off consumers and lately they have included brides whose wedding plans were disrupted by vendors gone into bankruptcy or closed down and left town without a forwarding address.The situation has become so prevalent with commercial bankruptcies on the rise that Fleming and the BBB are advising brides and bridegrooms to consider purchasing wedding insurance.According to Fleming, the number of businesses filing for bankruptcy was up 47 percent in February over the previous year. While more well-known company filings like Ritz Camera make headlines, many smaller, independent businesses are also struggling in the current economy, she said.The BBB has filed complaints about bridal boutiques and other wedding-related businesses that suddenly closed up shop, leaving engaged couples in a bind.More than 40 percent of all wedding insurance claims filed by Travelers’ Insurance Co. policyholders during the past two years involved unforeseen problems with vendors or other wedding-related businesses, some of which went bankrupt in the worsening economy.”Considering that the average wedding costs more than $28,000, soon-to-be newlyweds have a significant amount of money on the line and a vendor’s Going out of Business sign can be far worse than rain on their wedding day,” said Fleming. “Wedding insurance can provide peace of mind for a couple that their money will be recovered if a vendor or venue falls through at the last minute.”Fleming recalled a serious situation that occurred last summer. The BBB serving Charlotte received a flood of complaints from desperate brides about a local bridal shop, La Bella Sposa, which recently filed bankruptcy after deceiving many of its customers.The complaints stated that the bridal shop took their money, ordered the dresses, but did not pay the designers, so the dresses never arrived. La Bella Sposa was allegedly taking orders for new dresses, but passed off the floor samples as original dresses. One bride had paid the shop more than $10,000 for a gown and 13 bridesmaid dresses, but La Bella Sposa closed its doors, taking her money with it two weeks before her wedding, Fleming said.Another bride was devastated to learn four days before her wedding that, while she thought her dress was undergoing final alterations, the bridal shop had actually sold the dress to another bride.Aside from the gown, wedding insurance can provide coverage for mishaps that might affect a wedding, including vendor no-shows, foul weather, military deployment and health issues involving the key participants. Bankruptcies can involve florists, jewelers, banquet halls, tailors, equipment rental services, limousines and other businesses typically sought out by those planning a wedding.The BBB has begun advising engaged couples to research insurance companies with the BBB before purchasing a policy, and to shop for wedding insurance before paying deposits on any wedding services.Comparison shop and pay close attention to the fine print, Fleming said.Based on estimates from The Insurance Information Institute, wedding insurance will cost between $125 to $400, depending on the amount of coverage. Like any insurance plan, there are limits on claims and deductibles that must be met, Fleming said.The BBB also has advised avoiding the purchase of overlapping coverage, since some vendors might already be insured or coverage might be provided by the credit card company.”Keep good records and all receipts for the insurance company in order to justify any reimbursements,” she said.