Funeral Home Insurance Policy Information
Funeral Home Insurance. Funeral directors or morticians prepare deceased bodies for burial or cremation. Services offered generally include transportation of the body to the funeral home for preparation and embalming, the sale of caskets, urns, and memorial items, funeral services at any location chosen by the client, transportation of the body, flowers, and family members to the cemetery, and notification to the local newspaper.
Cremation also can be arranged through the funeral director. A pre-payment option may be offered, which places a long-term fiduciary responsibility on them.
Funeral home insurance policy is vital for businesses including funeral homes, which typically require coverage for a variety of costs including property damage and work-related bodily harm. On the whole, funeral homes require several insurance policies, each of which needs to be catered to your specific business.
No two funeral homes provide exactly the same service, and your commercial insurance needs might differ from your competitors. That's why each of these policies can be customized to meet your specific requirements.
That's is why the smartest move a funeral home can make is to ensure they are properly protected with an-adequate funeral home insurance policy.
Funeral home insurance protects your mortuary from lawsuits with rates as low as $47/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked funeral home insurance questions:
- What Is Funeral Home Insurance?
- How Much Does Funeral Home Insurance Cost?
- Why Do Funeral Homes Need Insurance?
- What Type Of Insurance Do Funeral Homes Need?
- What Does Funeral Home Insurance Cover & Pay For?
What Is Funeral Home Insurance?
Funeral home insurance is a type of liability insurance designed specifically for funeral homes and their employees. It covers the funeral home against claims arising from the death of a client, including errors or omissions, damage to property, or personal injury to clients or employees.
The insurance typically includes general liability, professional liability, and workers' compensation coverage. This insurance helps funeral homes protect their assets and reputation, and provides peace of mind for their clients.
How Much Does Funeral Home Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small funeral homes ranges from $47 to $79 per month based on location, serviced offered, payroll, sales and experience.
Why Do Funeral Homes Need Insurance?
As a funeral home provides a critical service to families in a time of grief and loss, it is important to have proper insurance coverage to protect against potential financial losses or liabilities. Some of the reasons funeral homes need insurance include:
Property damage: Funeral homes may have valuable assets, such as buildings, vehicles, and equipment that need to be protected against potential damage or loss.
Liability coverage: Funeral homes may be held liable for accidents or incidents that occur on their property, such as a slip and fall. Liability insurance can provide protection in the event of a lawsuit.
Professional liability: Funeral directors may be sued for errors and omissions in their work, such as a mistake in embalming or mismanagement of a funeral service. Professional liability insurance can provide protection against these potential losses.
Employee coverage: Funeral homes may have employees who are injured on the job or who need protection against workplace accidents. Workers' compensation insurance can provide financial support and medical care for these employees.
Overall, funeral homes need insurance to protect themselves against potential financial losses and to ensure they can continue providing quality service to families in their time of need.
What Type Of Insurance Do Funeral Homes Need?
Commercial General Liability Insurance
This type of policy covers any costs associated with a number of events including lawsuits, settlements, employee injury, or property damage involving a third party. If for instance, a mourner slips and falls inside your business premises; or one of your workers damages a customer's vehicle while going about their business, general liability insurance can help with expenses relating to property damage and/or medical costs.
The business itself needs coverage for property damage (i.e., to protect assets and fixtures inside the building) in case of a hazardous event such as fires, storm, theft, and vandalism. Your premises probably needs coverage for items such as:
- Office equipment including computers and other electronics
- Specialized equipment for embalming
- Business property such as coffins on display or for sale
Some businesses are eligible for a comprehensive insurance package known as Business Owners' Policy (BOP), which offers liability insurance, property insurance, and business interruption insurance in an affordable package.
Discuss this with your insurance agent to find out what types of funeral home insurance packages your business is eligible for.
Special Funeral Home & Director Liability Coverage
In order to establish an infallible insurance policy, both the funeral home and directors may require additional liability protection to boost your basic CGL policy and to safeguard specific standalone policies. This may include:
Directors & Officers liability insurance: This is meant to protect essential decision makers in the business (e.g., board of directors) from any legal issues arising from misconduct or poor decisions.
Without this form of protection, individuals in management position may lose their assets in a lawsuit if found to have done any of the following:
- Bad investment decisions
- Illegal hiring and firing
- Releasing confidential information to the public
- Failure to maintain property
- Gross negligence
- Conflicts of interest
Professional liability insurance: It is not uncommon for funeral directors to be accused of negligence or error, resulting in financial harm to the family of the deceased. Regardless of the validity of the claim, your professional liability policy can help cover costs when proving your case.
Commercial Auto Insurance Coverage For Hearses And Other Vehicles
Driving is a major part of the funeral home business, and businesses that own fleets of hearses, trucks, cargo vans, and passenger cars need insurance coverage for both the vehicles and the drivers.
Commercial Auto Insurance: This policy covers a number of things including collision and comprehensive motorist coverage for commercial vehicles. Coverage is normally based on two things; the way your vehicles are used in the business, and the persons responsible for driving them.
For individuals who prefer to hire or lease business vehicles - or if you and your workers use personal vehicles for business purposes, additional coverage may be required. commercial auto policies typically cover the following:
- Vehicles owned and operated by your business
- Vehicles owned or leased by your business
- All vehicles used for business purposes (this includes vehicles not owned, hired, or leased by the business, e.g., a personal car used to conduct business).
You can choose to list the vehicles separately on your auto policy based on each vehicle's characteristics and corresponding funeral home insurance coverage.
Additional Funeral Home Policies
Aside from the standard funeral home insurance policy, you can explore other options with your insurance agent to find out ways in which you can protect your business and employees.
Worker's compensation insurance policy protects your workers from costs relating to illness and injury and is required for any non-owner employees in most states. On the other hand, a package such as excess liability coverage can provide additional coverage or supplemental liability protection, giving your business coverage beyond the normal limits offered by standard policies.
Other types of coverage that may be of interest include pollution liability insurance, employment practices liability insurance, and employee theft or crime.
Funeral Home's Risks & Exposures
Premises liability exposure is high as people entering the location to arrange and attend funerals are often in a fragile emotional state and may be unaware of their surroundings. The rooms and halls must be free of obstructions, and floor coverings must be in good condition.
There should be sufficient personnel to direct and assist, and they must be able to handle emergency situations. Parking lots and sidewalks must be kept free of ice and snow and must be in good condition. Lighting should be sufficient for the situation. Visitors may bring food into a designated area, which needs to be kept clean. If there is a playroom for children, it must be supervised at all times. Additional security may be required for high-profile funerals.
Off-premises exposures include conducting services at houses of worship, event centers, homes, and gravesites. Equipment used during services can pose a tripping hazard.
Professional liability exposure is high. While damage to a body is considered property damage, any improper handling can result in emotional distress to the family. The funeral director should comply with FTC regulations regarding itemization of prices for any services rendered. There should be excellent documentation regarding identification and handling of the deceased and any personal effects.
The family's wishes concerning all aspects of the body handling must be documented, signed, and strictly followed. There should be procedures on checking latches on the casket and on the hearse. Should cremation or other services be outsourced, the funeral director should be sure there is adequate liability coverage in place from the outsource vendor.
Environmental impairment exposure is high due to the potential for air, surface, or ground water, or soil contamination due to the toxic and corrosive impact of the embalming fluid and waste materials such as blood. The director must adhere to all federal and state guidelines for proper disposal.
Workers compensation exposure can be high due to the handling of bodies. Common injuries include cuts, puncture wounds, slips, trips, falls, foreign objects in the eye, and back injuries from lifting bodies. The use of chemicals can result in serious eye, skin, and lung injuries.
Some chemicals, particularly formaldehyde used in embalming fluid, are toxic. Employees must be fully informed as to the potential effects of any chemicals, including long-term occupational disease hazards so that they can take action as quickly as possible. Embalming operations require employees to wear gloves and masks to prevent contamination from bodily fluids, particularly blood.
Those transporting bodies to and from the funeral parlor, cemetery, or crematory can be injured in automobile accidents.
Property exposure consists of offices, a retail display area for caskets, urns, and memorial items, processing area, and viewing rooms. Ignition sources include electrical equipment, heating, and air conditioning. If the funeral home is located in a converted dwelling, all heating, cooling, and electrical wiring must meet current codes. Furnishings are highly susceptible to smoke, water, and fire damage.
Caskets are often wooden and lined with fabric that will help feed a fire. If embalming takes place on premises, the embalming fluid should be stored in small quantities and kept in an approved cabinet due to its corrosive and toxic nature. There should be adequate ventilation to prevent the buildup of chemical vapors which can ignite. Theft can be a concern, as the embalming fluid has become an attractive additive to marijuana.
Security is important to prevent unauthorized entrance to the premises. An on-premises crematory increases the exposure to fire due to the extremely high temperatures required to consume a body. There must be adequate clearances as the flue exits the chimney and controls in place to prevent overheating. Fuels used for crematory ovens include liquid petroleum, natural gas, or home heating oil. These must be stored in approved containers.
Crime exposure is from employee dishonesty. Background checks should be conducted on all employees handling money. Billing, ordering, and disbursements must be kept as separate duties. There should be a regular auditing of books especially if prepaid policies have been sold.
Inland marine exposures include accounts receivable if the funeral director offers credit, bailees customers, computers, special floater, and valuable papers and records for customers' and suppliers' information. The bailees customers exposure is from taking custody of the body of the deceased and any personal items that accompany it, plus personal items belonging to family and friends that are left in the funeral director's office or other designated area during visitations and the funeral. Equipment used off premises to conduct the funeral, such as at churches and other locations, should be covered with a special floater. Duplicates of all records should be made and kept off site.
Commercial auto exposures include transporting the body to the funeral home, then driving the hearse, flower car and other vehicles supplied to the family for funeral services. Additional services such as long distance body transport or emergency body pickup may be offered. All drivers must have the appropriate licenses and be aware of any local ordinances regarding funeral processions. Side trips should not be permitted. MVRs should be ordered on a regular basis. Vehicles must be regularly maintained with documentation kept in a central location.
Garagekeepers liability exposure is moderate if the funeral director offers valet parking or places visitors' vehicles in line for funeral processions.
What Does Funeral Home Insurance Cover & Pay For?
Funeral homes can be sued for a variety of reasons, including:
Mishandling of remains: If a funeral home fails to properly care for or transport a deceased person's body, they can be sued by the family of the deceased. This can include issues such as misidentification of the body, improper embalming, or improper storage.
Breach of contract: If a funeral home fails to deliver the services promised in a contract with the family of the deceased, they can be sued for breach of contract. This can include issues such as failing to provide the agreed-upon casket or failing to arrange for the appropriate funeral services.
Negligence: If a funeral home is negligent in their duties, such as failing to properly secure a casket or allowing unauthorized individuals to handle the body, they can be sued for damages.
Fraud: If a funeral home engages in fraudulent practices, such as charging for services that were not provided or misrepresenting the quality of their services, they can be sued for fraud.
Insurance can protect funeral homes from the financial damages associated with these lawsuits. For example:
Liability insurance: Funeral homes can purchase liability insurance to protect themselves in case of a lawsuit. This insurance can cover damages and legal fees associated with claims of negligence, mishandling of remains, or other issues.
Errors and omissions insurance: This type of insurance can protect funeral homes from claims of breach of contract or other errors in their services. It can cover legal fees and damages associated with such claims.
Fraud insurance: Funeral homes can also purchase insurance to protect themselves from claims of fraud. This insurance can cover legal fees and damages associated with claims of fraudulent practices.
In each of the examples given, insurance can help pay for the lawsuit by covering the costs of legal fees and damages associated with the claim. Without insurance, funeral homes may be required to pay these costs out of pocket, which could be financially devastating for the business.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7261 Funeral Service and Crematories
- NAICS CODE: 812210 Funeral Homes and Funeral Services, 812220 Cemeteries and Crematories
- Suggested Workers Compensation Code(s): 9620 Funeral Director & Drivers
7261: Funeral Service and Crematories
Division I: Services | Major Group 72: Personal Services | Industry Group 726: Funeral Service And Crematories
7261 Funeral Service and Crematories: Establishments primarily engaged in preparing the dead for burial, conducting funerals, and cremating the dead.
- Funeral directors
- Funeral homes or parlors
Funeral Home Insurance - The Bottom Line
When shopping for the best funeral home insurance, discuss with your agent all items that may need coverage, and find a policy tailored to your specific business. Small businesses need a trusted advisor who will be able to guide them in finding quality, affordable insurance that shields them from the myriad problems that can arise at the workplace.
Additional Resources For Retail Insurance
Read valuable small business retail insurance policy information. In a retail business, you need to have the right type of commercial insurance coverage so that your store, employees, and inventory are protected.
- Adult Novelty
- Antique Dealers
- Appliance & Electronics Store
- Army Navy Surplus Stores
- Art Dealers
- Art Gallery
- Arts & Crafts Supply Stores
- Bicycle Shop
- Boat Dealers
- Book Store
- Bridal Shop
- Candy Confectionery Store
- Carpet Store
- Cell Phone Stores
- Clothing Store
- Collectibles Memorabilia Store
- Consignment Stores
- Convenience Store
- Cosmetics Store
- Costume Stores
- Dry Cleaning
- Embroidery Services
- Equipment Rental
- Fabric Stores
- Fish Markets
- Flea Markets
- Funeral Home
- Furniture Store
- Gift Store
- Greeting Card Stores
- Hardware Store
- Harness & Saddle Shops
- Home Improvement Store
- Infant, Baby & Children's Clothing Stores
- Jewelry Store
- Lamp Stores
- Lingerie Store
- Luggage Store
- Meat Market & Butcher Shop
- Men's Clothing Stores
- Music Store
- Office Supply Store
- Paint & Wallpaper Store
- Pawn Shop
- Pet Store
- Pharmacy Liability
- Plumbing Supplies Fixtures Store
- Poultry Dealers
- Rent To Own Stores
- Scrap Metal Dealers
- Sewing Store
- Shoe Store
- Sporting Goods Store
- Stationary Store
- Thrift Store
- Ticket Agency
- Tire Store
- Tobacco Store
- Toy Store
- Travel Agency
- Trophy Stores
- Tuxedo And Formal Wear Rental Store
- Vending Machine Operators
- Wig Store
- Women's Clothing Stores
- Specialty Retail Stores
The retail industry is a vital sector of the economy, providing goods and services to consumers across the globe. It is also a sector that is constantly evolving, with new technologies and trends emerging on a regular basis.
Despite its importance, the retail industry is not without its risks. Retail businesses face a variety of threats, including theft, damage to property, and liability issues. These risks can have significant financial consequences for retail businesses, which is why commercial insurance is so important.
Insurance can provide retailers with protection against financial loss resulting from unforeseen events. For example, if a retail store is damaged by a natural disaster, insurance can help cover the cost of repairs and help the business get back on its feet. Similarly, if a retail employee is injured on the job, insurance can help cover their medical expenses and any lost wages.
In addition to protecting against financial loss, commercial insurance can also help retail businesses protect their reputation. If a retail business is sued or faces other legal challenges, insurance can provide financial support and legal representation. This can help to protect the business's reputation and maintain customer trust.
Overall, insurance is an essential component of a successful retail business. It helps to safeguard against financial loss and protect against potential legal challenges, which can be especially important for smaller businesses that may not have the resources to absorb these types of losses.
By investing in business insurance, retail businesses can ensure that they are well-equipped to handle the many challenges that come with operating in this dynamic industry.
Minimum recommended small business insurance coverage: Business Personal Property, Business Income and Extra Expense, Equipment Breakdown, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits, Umbrella, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Building, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Computer Fraud, Forgery, Bailees Customers, Goods in Transit, Jewelers Block, Cyber Liability, Employment-related Practices, Business Auto Liability and Physical Damage and Stop Gap Liability.