Company insurance is intended to safeguard the financial assets of a business owner and is a critical investment for a firm.
This article will discuss the primary insurance coverage for crematoriums, general liability insurance, as well as additional policies that are appropriate for this industry.
Crematorium General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
Common Situations That A Crematorium’s General Liability Insurance May Cover
Example 1: While viewing your cremation facility, a prospective customer stumbles and falls, hurting her knee. She requests that your company pay for her medical care because you forgot to post a warning about the damp floor. If you submit a claim, your general liability insurance coverage will most likely pay the expenses of treating her injuries.
Example 2: One of your workers is transporting goods from a delivery truck to the crematorium when he loses his balance and drops the cart. The highly laden cart collides with the luxury automobile of a client who is now in your establishment, inflicting significant damage to the vehicle. The cost of repairing the customer’s car would most likely be covered by your general liability insurance coverage.
Example 3: You’ve chosen to invest in a new logo for your crematorium. You get an email from your competitor’s attorney after you begin utilising the logo in your marketing materials. According to the attorney, the competition is suing your company because the logo is too similar to his own. Your legal defence will be covered by your general liability insurance coverage. If you need to settle the matter outside of court, your general liability insurance will cover the costs.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
The typical American cremation pays between $450 and $700 per year for $1 million in general liability insurance.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Other Types of Coverage Required by Crematoriums
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all crematoriums should have are as follows:
Insurance for Workers’ Compensation
Workers’ compensation insurance is required in most states. Because you have employees assisting you in running your company, you must have a workers’ compensation coverage in place. Your coverage provides several advantages. It will pay for your workers’ medical care for job-related injuries, allowing them to heal and return to work. It will also assist in covering the expense of missed income for workers who are unable to work due to their ailments.
Insurance for Commercial Property
The equipment you acquired to run your company, like as your furnaces, was pricey and would be costly to replace if destroyed by a calamity. In the event of a fire, business property insurance would offer the necessary protection for your commercial equipment. You might make a claim for commercial property insurance and get assistance in acquiring new equipment for your firm. Your policy’s backing would make it much simpler to get your company back up and running.
Coverage Options for Some Crematoriums
In addition to the insurance listed above, your business may need other forms of coverage based on particular features of your activities. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Umbrella Insurance for Businesses
There are limitations in every general liability insurance policy. When such restrictions are reached, the insurance stops paying, leaving you to pay for everything over those limits. Sometimes your general liability insurance coverage may not be sufficient to cover everything. This might happen if your company loses a costly litigation, for example. However, a business umbrella insurance coverage will provide you with additional security. The umbrella coverage will take over where the general liability policy ends.
Insurance for Commercial Vehicles
If you have a vehicle that is mainly used for your cremation company, you must ensure that it is protected by a commercial car coverage. You, your workers, and your car are all protected with business auto coverage. If you or your workers are involved in a car accident, your insurance will help pay for repair or replacement expenses as well as medical treatment for anyone affected. Commercial auto insurance is also required by state law.
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Stay up to date with business licensing.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.