Business Insurance for Funeral Homes

Business Insurance is designed to protect a business owner's financial assets and is an essential investment for a funeral home.

This article will cover the main insurance coverage for funeral homes, general liability insurance, and suggest other policies that are suitable for this business.

The cost of business insurance varies greatly from one business to another. The only way to find your true cost is to get a quote.

General Liability Insurance For Funeral Homes

All businesses, regardless of industry, face risks that should be covered by insurance. The most common and comprehensive type of policy business owners invest in is general liability insurance.

Some of the risks general liability insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

While businesses aren't legally required to carry general liability insurance, operating without it is extremely risky. If your business is sued, you could end up facing fees totaling hundreds of thousands of dollars (or more). Having a sufficient general liability insurance policy in place to help compensate for these damages is the only way to prevent this type of event from devastating your business.

Learn more about the risks covered by general liability insurance.
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Business insurance is massively important to all businesses, whether large or small. Getting a quote will help you understand which coverages are right for your business and how much it will cost.

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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.

Of course, this is not an exhaustive list of perils a general liability insurance policy will cover, and some conditions may result in a particular peril not being covered. It's always best to talk to your agent in-depth about the specifics of your policy to avoid blind spots in coverage.

Learn more about the risks covered by general liability insurance.

Cost Of General Liability Insurance

On average, funeral homes in America spend between $400 - $700 per year for $1 million in general liability coverage.

Check out the chart below for a snapshot of average general liability insurance expenditure across a variety of industries:

Graph showing average price of general liability insurance prices per industry

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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Other Types Of Insurance Funeral Homes May 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 other types of insurance all funeral homes should obtain:

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.

Types Of Coverage Some Funeral Homes May Need

In addition to the policies outlined above, there are a few other types of coverage your funeral home may require depending on certain aspects of your operations. Some of these might not apply to you, so be sure to ask your agent which policies are right for your business.

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 should not be your frontline defense. Yes, insurance will compensate for your business’ financial losses after an incident occurs, but it’s much better to avoid losses altogether.

With this in mind, here are several things you can do to better protect your business:

  • Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
  • Set up a limited liability company (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.
  • Streamline your business’ internal processes. This will remove unnecessary variables from common tasks and create a safe, consistent environment for conducting business.
  • If your business is an LLC, look into LLC Insurance.

Steps After Getting Business Insurance

Depending on where you are in your business building process, here are some other actions you may need to take before getting started:

Business Insurance is the Best Way to Protect Your Business

If you're starting a new business, then you need business insurance. It's as simple as that. The protection offered by an LLC will protect your personal assets, but your business's assets are still open to liability in the case of a lawsuit or other loss.

Be sure that everything you've built is safe by getting business insurance.

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Frequently Asked Questions

What is included in a business owner’s policy?

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.

What is the difference between business insurance and general liability insurance?

"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.

Do I need insurance before I start a business?

You should invest in insurance coverage for your business before your first interaction with a customer. Although the cost of insurance may seem high for a brand new business, it’s best to be proactive when it comes to protecting your assets. After all, you can’t buy insurance to cover a loss that has already occurred.

Will insurance protect my business from everything?

Not necessarily. Certain exceptions may be written directly into your policy, and some perils may be entirely uninsurable. Be sure to discuss the scope of your policy in-depth with your agent to avoid being blindsided by holes in your coverage.

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