Crematorium Business Insurance
Getting insurance for your crematorium is essential.
Crematoriums, like any business, need protection from people being injured on company property, employment disputes, and other potential costs and financial liabilities.
For example, someone could be injured on a job site, there could be a financial dispute with a contractor, or someone’s property could be damaged.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Crematorium Business
General liability insurance is — generally speaking — one of the most important insurance policies for crematoriums.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
All crematoriums need general liability insurance. However, it’s important to know that this type of insurance doesn’t cover every type of loss or liability. For more comprehensive coverage, consider these other policy types:
- Commercial auto insurance
- Workers’ compensation insurance
- Commercial property insurance
- Commercial umbrella insurance
While there are lots of business insurance companies, most of them fall into two main categories: traditional brick-and-mortar insurers and online insurers.
Most traditional insurers are large companies that have been in business for decades and offer high-quality products. They’re often a good choice.
However, you also can purchase excellent insurance from online insurers, which are found on the web and have lower overhead because they use AI instead of agents to sell policies and because they don’t have physical locations. Their lower costs allow them to sell cheaper policies that are often more flexible as well.
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Cost of General Liability Insurance
The average crematorium in America spends between $450-$700 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a crematorium business to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
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Common Situations That General Liability Insurance May Cover for a Crematorium Business
Example 1: A potential client is touring your crematorium facility when she slips and falls, breaking her knee. She asks that your business pays for her medical treatment because you failed to put up a sign about the wet floor. Your general liability insurance policy will likely cover the costs of treating her injuries if you file a claim.
Example 2: One of your employees is hauling a hand cart full of supplies from the delivery truck to the crematorium when he loses his footing and lets go of the cart. The heavily loaded cart careens into the luxury car of a customer currently in your place of business, causing considerable damage to the vehicle. Your general liability insurance policy would likely cover the cost of fixing the customer’s vehicle.
Example 3: You have decided to purchase a new logo for your crematorium business. Once you begin using the logo in your marketing materials, you get an email from the attorney of your competitor. The attorney writes that the competitor is suing your business because the logo is too similar to his own. The general liability insurance policy that you have will pay for your legal defense. Should you need to settle the case outside of court, your general liability insurance will pay for the settlement as well.
Other Types of Coverage Crematorium Businesses Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Workers’ Compensation Insurance
Most states require employers to have workers’ comp insurance. Since you have employees helping you operate your business, it is important to carry a workers’ comp policy. Your policy has multiple benefits. It will pay for the medical treatment of work-related injuries for your employees, so they can recover and come back to work. It will also help to cover the cost of lost wages for employees who are forced to stay home due to their injuries.
Commercial Property Insurance
The equipment you have purchased to make your business operational—like your furnaces—was costly and would be expensive to replace were it to be ruined by a disaster. In the case of something like a fire, commercial property insurance would provide the protection you need for your commercial equipment. With commercial property insurance, you could file a claim and get help with purchasing new equipment for your business. The support of your policy would make it much easier to get your business back up and running.
Commercial Umbrella Insurance
Every general liability insurance policy has limits. Once those limits are exceeded, the policy stops paying—which means that you are left paying for anything beyond those limits. Sometimes situations occur where your general liability insurance policy will not be enough to pay for everything. This can happen when your business loses an expensive lawsuit, for instance. But with a commercial umbrella insurance policy, you will have added protection. The umbrella policy will pick up where the general liability policy leaves off.
Commercial Auto Insurance
If you have an automobile that is used primarily for your crematorium business, then you need to make sure that it is covered by a commercial auto policy. With commercial auto coverage, you, your employees and your vehicle have protection. Should you or your employees be in an accident in the vehicle, your policy will help pay for repair or replacement costs and medical treatment for those involved in the accident. State law requires you to carry commercial auto insurance as well.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your crematorium business:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Crematorium Business Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
To help ensure that your crematorium stays financially viable, you need business insurance before beginning operations. All industries have inherent risks, and proper insurance will shield you from potentially disastrous liabilities.
You also may not have a choice about whether to buy insurance because most states require companies to have it. For example, most require workers’ compensation and auto insurance.
Not necessarily. Certain exceptions may be written directly into your crematorium business insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.