Insurance for funeral directors is a highly specialized product. A policy that works for a retail shop or another service professional might not completely cover your firm's needs.
For instance, you may need insurance that covers offsite property, like tents and chairs left at a cemetery, or damage to remains or vessels holding them. A good business insurance agent can put together a policy that covers your unique business risks.
Equipment breakdown coverage: This coverage helps pay for repairs if your facility's heating/ air conditioning, electrical system, phones, computers or other key equipment fails or is damaged. According to the Insurance Risk Management Institute (IRMI), this specialized coverage could also cover lost income and other costs related to your equipment breakdowns. Your deductible and maximum limits for this coverage will vary according to the policy you purchase.
Business property coverage: A critical type of insurance for all small businesses. This important coverage helps protect your funeral home's physical building, as well as its contents. Covered losses will vary according to your specific policy, but this coverage could protect you if, for example, a vandal breaks one of your facility's windows or a thief steals customers' valuable jewelry, furs, or other personal items while in your care.
General liability coverage: This key coverage helps protect your business in case someone is injured while in your facility and you're found liable. For instance, general liability coverage could protect you if someone trips on rug leading into your chapel and breaks a hip or one of your employees damages the belongings of a deceased person in your care. According to the Small Business Administration (SBA), liability coverage can also protect you against claims of false/misleading advertising claims, copyright infringement, or libel/slander.
Business interruption coverage: If a covered event like a fire or storm were to halt your business for an extended period of time, this policy could help replace your lost income and cover expenses needed to keep your business operating smoothly. According to the Insurance Information Institute (III), lost-income compensation would be based on revenue you typically would have earned (according to your past financial records) if the disaster hadn't occurred.
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