As the owner of a funeral home, you conduct your business interacting with people at their most vulnerable, during what could be the saddest moments of their lives. If you do your job right, you make the process easy and convenient, and, hopefully, you provide some level of comfort. But you know the stakes are high and even the smallest mishap can take on even greater significance to those in mourning. And that is not even considering the possibility of something truly disastrous occurring. You must take the proper steps to protect yourself and your business in case of such a calamity. The best way to do so is with a comprehensive funeral home insurance policy.

In this guide, we aim to give you the essential information about funeral home insurance costs and provide some suggestions to help you find the policy you need for your business.

We Cover in This Guide

• How much does funeral home insurance cost?

• What is funeral home insurance?

• What does funeral home insurance cover/not cover?

• Benefits and risks

• Types of insurance you may need

• Tips for buying

• FAQ

• Summary

How Much Does Funeral Home Insurance Cost?

Funeral home insurance costs range from $39 to $49 per month depending on the size of your business, coverage, limits, provider, number of employees, and location. Take a look at the following examples of common policies and their prices.

• Basic coverage (essential protection for your needs): $39 per month for general liability insurance

• Standard coverage (includes protection for your property, equipment, and other assets): $49 per month for general liability insurance + property (bundle them as a business owner policy)

• Professional coverage (protection against employee illness and injury): $49 per month for business owners policy (BOP) + workers’ compensation insurance.

If these policies do not meet all your needs, most providers allow you to supplement your package with additional coverage at an additional premium cost.

What is Funeral Home Insurance?

Funeral home insurance is coverage specially designed for the risks funeral home owners face in operating their business. These potential liabilities range from an elderly funeral attendee falling on your promises, to your cremation unit breaking down or starting a fire, to your mortician getting ill from the chemicals involved in preparing a body. If any of these scenarios occur, it can be extremely costly and damaging to your business. Lawsuits are time-consuming and expensive; and if you lose, the damages could wipe out your business earnings and potentially your personal finances. Additionally, if your equipment breaks down, not only will you have to pay to repair or replace it, you may miss out on business in the meantime. Funeral home insurance provides protection for all these potential situations and more.

What Does Funeral Home Insurance Cover/Not Cover?

While each package is different, typical funeral home insurance policies cover the common risks involved in the funeral industry. They generally include harm to prospective and current clients, funeral attendees, your employees, and damage to your own property. The specific liabilities covered include these and others that fall into the following categories:

• Third-party bodily injury

• Third-party property damage

• Personal injury

• Products/completed operations

• Business personal property damage

• Personal injury

• Lost business income

• Broken or damaged equipment, property, and other assets

• Employee illness or injury and related medical expenses

• Lost wages

These policies do not cover everything. There are certain risks that require the purchase of additional insurance.

• Accidents involving your hearse

• Clients dissatisfied with any of the services you provide

• Release of private client information from a data breach

Benefits And Risks

Funeral home insurance offers countless benefits to cover the risks your funeral business may face, including:

• Compliance: Membership in a certification program may require having funeral home insurance coverage.

• Protecting your assets: One claim can potentially wipe out all your earnings and destroy your business. Funeral home insurance will help cover these risks.

• Cover legal expenses: If a client, third-party, or employee sues you, you are protected from the costs of fighting the lawsuit and the damages if you are found liable.

• Peace of mind: ​Knowing that you are covered in the worst-case scenario allows you and your employees to focus on the work and services you provide without being preoccupied with what could go wrong.

Types of Insurance You May Need

• General Liability Insurance: Protects you against third-party property damage, injury, advertising mistakes and other related claims.

• Commercial Auto Insurance: Covers damage and injury from accidents involving business-owned vehicles.

• Commercial Property Insurance: Provides coverage for your assets, equipment, and other property in cases of breakdown and damage from covered scenarios.

• Workers’ Compensation Insurance: Covers medical expenses, rehab, and replaces lost wages in cases of employee injury or illness.

• Professional Liability Insurance: Protects your business from claims of errors, negligence, or mistakes related to your service.

• Cyber Liability Insurance: Covers your business from liabilities related to data breaches, hacks, and other potential damages from cyber crimes.

Tips For Buying

When considering funeral home insurance cost, keep the following in mind before signing a contract:

• Work with an independent agent: An independent insurance agent will help direct you toward providers with the best rates and the most experience covering funeral homes and related fields.

• Identify your risks: Be sure to thoroughly analyze your business, taking into account your clients and employees, to identify potential risks.

• Compare quotes: Policy costs vary between insurers. Consider at least three quotes to find the best rates and coverage.

FAQ

- How can I save some money on my funeral home insurance policy?

Try bundling some of your different insurance policies. Providers will often provide discounted rates when you combine certain key coverages, like a business owners policy (BOP), which combines general liability and commercial property.

- I am worried about potentially large claims beyond most coverage limits. What can I do?

Basic funeral home insurance may have certain limits and raising them can be extremely costly. If you think your business carries the risk of a potentially high claim, it may make sense to purchase umbrella insurance. It is a way to cover damages above the limits of typical policies.

- What is the difference between general liability insurance and professional liability insurance?

General liability insurance protects your funeral home against claims that you or an employee caused bodily injury, property damage, or personal injury.

Professional liability insurance covers damages related to mistakes, errors, and negligence resulting from the services you provide.

Summary

Funeral home insurance provides essential coverage to protect you from all the risks you may face in the funeral business.

After reading this guide, you should now have a greater understanding of funeral home insurance costs and have the information you need to make a great decision about your own policy.