Funeral Directors Insurance: A Comprehensive Look At The Different Insurance Options Available For Funeral Homes
Most funeral homes in Chicago are privately owned by families, small companies or individuals. This means that most of these funeral homes are small businesses that are often well established. Just like all small businesses, funeral homes and their directors are therefore in need of an insurance policy. This article discusses all the funeral directors insurance options available for funeral homes, their benefits and what they insure against.
GENERAL LIABILITY INSURANCE
This type of insurance protects funeral directors against two types of liabilities: allegations that a home caused serious bodily harm to an individual and/or allegations that the home caused serious property damage. For instance, if a family member of the deceased steps on a crack around the funeral home and breaks a bone. If the member sues the home, general liability will cover for legal expenses.
This insurance can pay for legal defense, judgments, court fees and settlements even when the claim is thrown out of court or unmerited.
A funeral home owns different properties that need protection. These properties include the home itself and all its fixtures and furnishing used to make the home comfortable. Al these properties are prone to theft, fire and windstorms. Property insurance will help repair or replace the damaged/lost properties.
BUSINESS OWNER’S POLICY (BOP)
Some insurers may classify a home as low risk for general liability and property insurance. The home might qualify to apply for a BOP.
A BOP combines a property and general liability insurance policy, implying that you will be enjoying a combined package deal at a lower monthly rate.
FUNERAL DIRECTORS INSURANCE
This insurance is for those homes that are run by committee or advisory board and protects a home against the result of the actions of an officer, board member or director on behalf of the funeral home.
These claims might include that an officer or director misused the home’s funds, properly fired or harassed an employee or failed to perform some official duties. Such claims may lead to a lawsuit whereby a funeral director insurance will cover for all expenses.
COMMERCIAL AUTO INSURANCE
Funeral homes do a lot of transportation, including driving corpses from their premises to burial sites. Commercial auto insurance will cover for all vehicles used in work related transportation. In case the vehicles get involved in an accident, the policy will cover for all damages.
WORKERS’ COMPENSATION INSURANCE
Sometimes employees get involved in accidents when working at funeral homes. Workers’ compensation insurance compensates workers and pay for all their medical bills.
THE BENEFITS OF HIRING AN INSURANCE BROKER FOR FUNERAL DIRECTORS INSURANCE
An insurance broker can save a home money, time and stress. This is because brokers are experts in their field and have the adequate expertise to help in deciding the best insurance policy. They can therefore help directors in getting a policy that fits in their budget.
THE IMPORTANCE OF ANNUAL FUNERAL DIRECTORS INSURANCE REVIEWS
When an insurance policy is up for renewal, it is important for a funeral home to undertake an annual review. Such a review will help directors identify important insurance gaps and coverages. Funeral homes may need to periodically review their needs when renewing their policy and it is only a annual insurance review that can identify all the needs that need to be covered in the new policy.