Funeral Home Business Insurance
Getting insurance for your funeral home is essential.
Funeral homes need to be protected against things like breach of contract, professional negligence, and trademark infringement claims.
For example, your funeral home is sued for having a logo that’s allegedly too similar to another funeral home or for negligent handling of the deceased’s remains.
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 Funeral Home
General liability insurance is — generally speaking — one of the most important insurance policies for funeral homes.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Because general liability may not provide all of the coverage needed by a funeral home, funeral home owners commonly purchase additional policies, including:
- Commercial property insurance for your funeral home’s premises and equipment
- Professional liability insurance for any professional negligence, such as claims of mishandling
- Commercial auto insurance for any hearses or other company vehicles
- Commercial umbrella insurance to help extend other policy limits, if needed
The insurance providers you can purchase policies from are typically divided into two primary groups. Each of these has its own set of characteristics, including pros and cons:
- Traditional brick-and-mortar insurers — Describes providers such as Nationwide, Hiscox, and The Hartford.
- Online insurers — Describes providers such as Next and Tivly.
We strongly recommend businesses go to online insurers for coverage. They provide high-quality coverage and accurate quotes at far more affordable prices than traditional insurers do, plus their turnaround times are often faster.
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Cost of General Liability Insurance
On average, funeral homes in America spend between $400 - $700 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a funeral home 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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Discover the best coverage at the lowest rate in our affordable business insurance review.
Common Situations That General Liability Insurance May Cover for a Funeral Home
Example 1: During a tour of your funeral home, a potential customer slips and injures his arm and head. Because you failed to display a “caution” sign, the man threatens to sue. General liability insurance would cover the man’s medical bills and any legal costs in the event of a lawsuit.
Example 2: The new sign at your parking lot entrance features your recently updated company logo. A competitor threatens a lawsuit because your new sign is too similar to their logo. General liability would pay for your legal fees and any damages awarded in a settlement.
Example 3: While an employee moves supplies from a company vehicle into your funeral home, they lose control of the dolly and it hits a customer’s car. The impact smashes the passenger door and breaks the window. Your general liability coverage would cover the vehicle repair costs.
Other Types of Coverage Funeral Homes 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:
Commercial Property Insurance
You’ve made major investments to outfit your funeral home with the latest equipment, furniture, and other tools to provide a high-quality customer experience. If you own the building in which your business operates, you’re responsible for all business-related property housed there in the event of a fire or other natural disaster. Commercial property insurance would cover the cost of repairing or replacing damaged computers, furniture, and other business equipment after an accident.
Workers’ Compensation Insurance
Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability benefits stemming from a work-related accident.
Commercial Umbrella Coverage
Even the most responsible business owners can sometimes face a lawsuit that threatens to exhaust the limits of their primary insurance coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.
Commercial Auto Insurance
If you have an auto accident while running an errand for work, your personal car insurance won’t cover the damages. Commercial auto insurance covers repair costs and other damages resulting from an accident involving vehicles used as part of your funeral home business.
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 funeral home:
- 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.
Funeral Home 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.
Yes, to help ensure your funeral home is financially stable, you should obtain appropriate business insurance before accepting customers.
Additionally, as funeral homes likely need vehicles, you may be legally required by the state to hold certain policies like commercial auto insurance before you open.
Not necessarily. Certain exceptions may be written directly into your funeral home 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.