Clients sometimes ask me about wedding insurance: what it is, how to get it, whether they need it. Much like all other insurance policies, you don't really need it, until you do.
Many venues require couples to obtain wedding liability insurance, also known as special event coverage. But even if your venue doesn't require it, having insurance is never a bad idea. Insurance protects the venue and the hosts from liability in the event of an accident—someone slips on the dance floor and breaks their leg, someone gets drunk and causes property damage, an errant candle catches the drapes on fire. Your typical nightmare scenarios.
Wedding insurance is fairly easy and inexpensive to obtain. If the host (either the couple or one set of parents) has a homeowner's insurance policy, they can talk with their agent about a temporary rider that can be added to the policy for the event. If that's not an option, there are companies that specialize in event insurance.
These companies also provide wedding cancellation insurance to cover your deposits (which can be substantial) in the unfortunate event that you need to postpone or cancel your wedding. (It happens in real life, not just the movies.)
And the best part about all of this coverage is that the cost is reasonable. For just a few hundred dollars, you can get hundreds of thousands of dollars worth of coverage. In the end, it's worth it for the peace of mind it provides. As the old adage goes, better safe than sorry!