Why Wedding & Event Venues Should Offer Insurance & Financing to Renters
Renting out a venue to third-party renters for things like weddings, celebrations, and other types of events can be very profitable and a great source of income for properties like hotels and wineries. As a manager of a property, there are many aspects that need to be managed, including risk and billings, that can be an administrative burden on personnel.
Fortunately, due to new tools and platforms, it has become quite easy to manage risk and billings through on site insurance and financing options. These new options are designed to be embedded into the rental agreement process, requiring very little additional effort from the venue managers and personnel.
Point of Sale Financing
The cost of weddings have been on the rise, outpacing inflation. The average cost of a wedding in the United States has now soared to approximately $30,000. This trend is a clear indicator that couples are willing to invest in creating memorable moments. However, this also means that financing options become more appealing than ever. By offering financing, venues can help couples turn their dreams into reality without the burden of immediate, significant expenses.
New options like Marley are making it easy for venues to close sales by making it easy for renters to get financing for their wedding/event. The concept is quote simple – Offer financing as part fo the rental agreement process.
The benefits of on site financing:
1. Stand Out to Your Customers
Offering financing allows venues to stand out from the competition. Couples are actively seeking venues that understand their financial needs and provide tailored solutions.
2. Stop Missing Out on Revenue Opportunities
Couples often experience “sticker shock” when they see the total cost of their dream wedding. Financing ensures they don’t back away due to budget concerns, leading to more revenue-generating opportunities for the venue.
3. Reduce Accounts Receivable
Marley financing helps venues reduce accounts receivable by ensuring timely and predictable payments, making financial management easier and more efficient.
4. Quicken Sales Cycle – Make it easier for more customers to say ‘yes’!
Eliminate the friction from potential customers during the booking process. On site financing streamlines the sales process, helping couples make quicker decisions and reservations.
5. Risk-Free for Merchants + Protection from Credit Cards
Options like Marley offer a risk-free solution for merchants while protecting against credit card chargebacks. This provides peace of mind and financial stability for venue owners.
Embedded Event Insurance
It has now become very common for venues to make third-party insurance (event insurance) mandatory for renters. This is partially due to risk managers and lawyers become more savvy in risk reduction strategies, resulting in the venues looking for ways to offset their risk exposures. In the end, a single claim could lead to the venue losing their commercial insurance policy, which would prevent the venue from continuing to operate. A third-party insurance policy can insulate the venue’s regular insurance policy, which is another reason why more venues are choosing to make event insurance mandatory.
Platforms like GatherGuard, Special Insurance, and FLD are making it easier for venues to offer, manage and automate the event insurance process by embedding it into the rental agreement process.
The benefit of embedded event insurance platforms:
1. Insulates the Venue’s Regular Policy from Claims
Event insurance policies can act as the primary insurance policy, whereby the venue’s regular insurance policy is insulated from claims. For a sample of real claims examples see here.
2. Adds Value and Trust to the Renters
By making event insurance mandatory, it shows the venue renters that the venue leadership team takes things very seriously and is looking out for the best interest of the renters.
3. Policies Secured in Three Minutes or Less
The platforms mentioned above can issue insurance policies as part of the rental agreement process in 3 minutes or less, while guaranteeing that the venue general liability and additional insured requirements are being met.
By offering insurance and/or financing as part of the rental agreement process, venues can increase sales and decrease their risk at the same time without adding any administrative burden to their team or management.