Cremation services face unique challenges and risks that can undermine their financial success. You help your customers with dignified cremation services in the very worst of times. If you do your job well, your reputation for quality, personal service will grow. If you make mistakes or things go wrong, you can face serious financial losses.
Unfortunately, just one on-site injury or incident of poor service can tear down all that you have built. Your business is highly susceptible to fires that can completely destroy your business. And you’re as susceptible to damage from weather events, theft, and vandalism as any other business, yet your commercial property and the type of equipment you use is incredibly unique.
What Does Cremation Service Insurance Cover?
Cremation services need business insurance in the event that someone is injured on their property (family members, delivery people, maintenance workers, employees), or if an error or other problem occurs during the cremation process.
Families may sue cremation services for a variety of reasons. What if remains were improperly handled? What if you do not handle a deceased person’s remains according to the family’s wishes? You are exposed to lawsuits everywhere you turn.
- Commercial general liability (CGL) insurance: This protects cremation services from a wide range of potential liability claims or lawsuits by third parties. If some type of bodily injury (a delivery person slips and falls on your premises) or property damage (you fail to remove a piece of valuable jewelry from a deceased person before cremation) occurs on your premises, the injured party — customer, vendor, delivery person, etc. — can sue you for the damage. CGL insurance covers costs related to these lawsuits, including legal fees, settlements or judgments, and court costs. It also covers claims of advertising liability, slander, and libel.
- Professional liability insurance: Also known as errors and omissions insurance, this may pay if you are sued for mistakes, oversights, or failure to deliver services as promised.
- Cremation services need workers’ compensation insurance to protect employees from on-the-job injuries. Your employees work in a dangerous environment, making them susceptible to all kinds of injuries, including burns, lost limbs, slips and falls, heavy lifting injuries, and more. Workers’ compensation insurance covers the cost of work-related injuries and illnesses, including medical bills and lost income for the injured workers.
- Commercial auto insurance: This is coverage you need for any owned vehicles that are used to pick up and deliver remains, and for any other business purposes. Commercial auto insurance provides liability, collision, comprehensive, and uninsured/underinsured motorist coverage for your commercial vehicles. Your coverage should be based on how your vehicles are used in your business and who will be driving them. If you hire or lease your business autos or if you or your employees drive personal vehicles for business purposes, you may need additional or amended coverage.
- Commercial property insurance: This is important for covering buildings and their contents. You have a significant fire exposure, as well as typical property exposures such as weather events, vandalism, and theft. Commercial property insurance covers the costs of making repairs and replacing damaged or destroyed property after certain covered events.
- Business interruption insurance: This is additional coverage you'll need to provide for business expenses and lost income if you are forced to temporarily close your doors to make repairs after some type of covered loss. Be sure to talk to your independent insurance agent about any special coverage you might need for cremation equipment and any other heavy machinery that you use in your business.
What Other Cremation Service Insurance Policies Do You Need?
In addition to basic cremation service insurance, you should discuss with your independent insurance agent the following types of insurance that you might need.
- Commercial umbrella insurance: Also known as excess liability coverage, this provides supplemental liability protection beyond the limits of certain other liability policies.
- Pollution liability insurance: This may be needed if you use and dispose of certain chemicals, medical waste, or other air or water pollutants that result from your cremation services
- Employment practices liability insurance: This covers you if an employee sues you for discriminatory employment practices.
Work with your independent insurance agent to determine if you need coverage for:
- Employee theft and crime
- Loss of refrigeration
- Property of the deceased
- Valuable papers
- Signs and glass
- Floods and earthquakes
- Sewer backup
How Much Does Cremation Service Insurance Cost?
Cremation service insurance costs will vary depending on the size of your business, the number of employees you have, and the value of your commercial property (buildings, furniture, cremation equipment, etc.).
If you have multiple locations, you’ll pay more for insurance than a business with a single location. Other factors such as the crime and weather risk in your area, and more, also impact the cost of business insurance for cremation services.
An independent agent who has experience working with cremation services can help you decide the types and amounts of coverage you need for your business. The choices you make will determine your cost of coverage.
Find and Compare Quotes
An independent agent can work with you one-on-one to determine the types and amounts of coverage you need. Your agent can get quotes from multiple insurance companies so you can evaluate the cost and coverage options and make the best choice.
Benefits of an Independent Agent
Our agents simplify the search process for finding the right cremation service insurance. They’ll walk you through the handpicked policy options and explain the details.
Most importantly, they’ll be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.
The Lowdown on Online Quotes
Online quotes can be tempting. They are fast and easy to get — but are they accurate? And are you getting quotes for the right coverage? For business owners, choosing speed over accuracy can cost you.
Online quotes can’t and don’t see the whole picture. They can omit important coverage that will leave you devastated if something unexpected happens. And they can leave out cost-saving opportunities that an agent can help you take advantage of.
Instead of getting an online quote, find an independent insurance agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs.
TrustedChoice.com Article | Reviewed by Paul Martin
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