Company insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for a funeral home.
This article will discuss the primary insurance coverage for funeral homes, general liability insurance, as well as additional products that are appropriate for this industry.
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Funeral Home 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.
GENERAL LIABILITY INSURANCE MAY COVER COMMON SITUATIONS FOR A FUNERAL HOME
Example 1: A prospective client stumbles and injures his arm and head while touring your funeral home. The guy has threatened to sue you because you forgot to post a “warning” sign. In the case of a lawsuit, general liability insurance would cover the man’s medical expenditures as well as any legal fees.
Example 2: The new sign at the entrance to your parking lot includes your freshly updated corporate logo. A rival has threatened to sue you because your new sign looks too much like their emblem. General responsibility would cover your legal bills as well as any settlement damages.
Example 3: While moving goods from a corporate truck into your funeral home, an employee loses control of the dolly and it collides with a customer’s automobile. The collision shatters the passenger door and fractures the glass. The car repair expenses would be covered by your general liability insurance.
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
Funeral establishments in the United States pay an average of $400 – $700 per year for $1 million in general liability coverage.
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.
Funeral Homes May Require Additional Insurance
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 funeral establishments should have are as follows:
Insurance for Commercial Property
You’ve made significant investments in your funeral home’s equipment, furnishings, and other items in order to deliver a high-quality client experience. If you own the building where your company is located, you are liable for any business-related property that is held there in the case of a fire or other natural catastrophe. After an accident, commercial property insurance would cover the expense of repairing or replacing damaged computers, furniture, and other company equipment.
Insurance for Workers’ Compensation
Workers’ compensation insurance is required in most states for both part-time and full-time employees. This coverage covers your workers if they are hurt at work or get sick as a result of a workplace accident. It covers not just an employee’s medical expenditures and missed pay if they require time to recuperate, but also any disability benefits resulting from a workplace injury.
Types of Insurance That Some Funeral Homes May Require
In addition to the insurance listed above, your funeral home may need other forms of coverage based on particular elements of your business. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Commercial Umbrella Insurance
Even the most conscientious company owners may be faced with a lawsuit that threatens to exceed the limitations of their basic insurance policy. Commercial umbrella insurance protects you from having to pay for legal expenses and awarded damages that exceed the limits of your main policy out of pocket.
Insurance for Commercial Vehicles
If you get into an accident while conducting errands for business, your personal automobile insurance will not cover the losses. Repair expenses and any losses arising from an accident involving cars utilised in your funeral home business are covered by commercial auto insurance.
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.)
Keep your company licences up to date.
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.