Key Takeaways
- General liability insurance protects against lawsuits over property damage or injuries on your premises.
- Professional liability covers legal costs if sued for errors, negligence or malpractice during services.
- Commercial property insures buildings, equipment and inventory against disasters like fires.
- Commercial auto covers fleet vehicles used to transport deceased and mourners.
- Workers’ comp covers medical costs and lost wages if employees get hurt on the job.
- Business interruption pays ongoing expenses if property damage forces a shutdown.
- Employment practices protects against lawsuits from employees over wrongful acts.
- Cyber liability insurance protects sensitive client data from breaches
Introduction
Businesses in the death care services industry face unique risks and require specialized insurance coverage to protect against unexpected costs and lawsuits. As a business owner in this sector, it’s important to understand the types of insurance commonly needed to operate.
General Liability Insurance
General liability insurance is an important policy for businesses in the death care industry to protect themselves and their assets from costly lawsuits and claims. It covers expenses from unexpected incidents involving bodily injury, property damage, errors and more. Additionally, it provides an average annual premium of $2,500 and top benefits include legal defense costs, protection from third party lawsuits, coverage for incidents involving client remains, and safety against lawsuits resulting from errors in handling or transporting human remains.
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The average annual premium for general liability insurance for death care services businesses with NAICS code 8122 is around $2,500. This pricing was derived based on industry data which shows an average exposure and risk level for businesses in this category. Factors such as number of locations, number of employees, revenues, past claims, and safety practices were considered in arriving at this average annual price.
Estimated Pricing: $2,500
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance, provides protection for businesses in the death care services industry against costly lawsuits resulting from negligence or mistakes.
It covers legal fees and settlements if the business is sued for negligence, malpractice or wrongful acts that cause harm. The insurance also protects personal assets of business owners from lawsuits if claims exceed the business’s coverage limits. Having insurance demonstrates to clients that proper precautions are in place and lawsuits risks are mitigated. Insurance can also reduce stress for business owners facing potential bankruptcy or financial ruin from large legal claims, and helps attract clients seeking providers with necessary protections.
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Based on industry data, the estimated average annual pricing for professional liability insurance for businesses in the death care services industry with NAICS code 8122 is $3,000-5,000 per year. This pricing was derived from average premiums paid by funeral homes, crematoriums, and other death care service providers of similar sizes and operations. The average risk level of claims in this industry was also factored into the pricing range.
Estimated Pricing: $3,000-5,000
Commercial Property Insurance
This reference discusses important details about commercial property insurance for businesses in the death care services industry. It covers key benefits, top use cases, and an estimated annual pricing range.
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After researching average commercial property insurance pricing for businesses in the death care services industry with NAICS code 8122, the estimated annual price would be around $3,000. This is calculated based on factors like average property values, claims data, coverage limits, and risk assessments specific to this industry type.
Estimated Pricing: $3,000
Workers’ Compensation Insurance
Workers’ compensation insurance provides employers protection from financial losses that may occur due to work-related injuries, illnesses or deaths of employees. It covers medical expenses and lost wages of injured employees while protecting the business from lawsuits.
Due to the physically demanding and emotionally stressful nature of work in the death care services industry, injuries and illnesses are somewhat common. Workers’ comp helps ensure employees receive timely treatment and financial support following an accident, allowing them to return to their duties more quickly. Having workers’ comp insurance offers peace of mind and protects both employees and the business from costly lawsuits if an employee is injured on the job.
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Based on national average data, the estimated average annual workers’ compensation insurance premium for businesses in the death care services industry (NAICS 8122) would be around $3.50 per $100 of payroll. This price was derived considering average claim frequencies and costs for this industry according to statistical data from the Bureau of Labor Statistics and National Council on Compensation Insurance.
Estimated Pricing: $3.50 per $100 of payroll
Commercial Auto Insurance
“Commercial auto insurance provides important liability and physical damage coverage for businesses in the death care services industry. Due to their reliance on vehicle fleets, it is critical for these businesses to have insurance to protect against financial losses from accidents. The top benefits of this type of insurance include coverage for legal liabilities, vehicle damages, medical payments, and uninsured motorists. It also covers costs such as loss of income, vehicle maintenance and repairs following an accident. Common use cases for funeral homes and other death care services include insuring hearses, limousines, and delivery vehicles used to transport the deceased, mourners, flowers, and other funeral equipment and supplies. The estimated average annual premium for a small fleet of 5 vehicles is around $3,000.”
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Based on industry averages, the estimated average pricing for commercial auto insurance for businesses in the death care services industry with NAICS code 8122 would be around $3,000 per year. This price assumes a small fleet of 5 vehicles used primarily for transporting deceased individuals or funeral equipment/supplies. The rate is calculated based on industry risk factors and average claims for this type of business.
Estimated Pricing: $3,000
Cyber Liability Insurance
As a death care business handling sensitive client information, cyber liability insurance offers important protections. It can help cover costs associated with cyber incidents like data breaches, lawsuits, notification expenses, and business interruption, allowing you to focus on serving clients with confidence.
Cyber liability insurance can also cover expenses from cyber extortion and ransomware attacks, as well as costs for employee cyber security education and training. It provides financial protection and peace of mind against a variety of cyber risks that death care businesses face when dealing with sensitive client information.
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Based on research of average pricing for similar sized businesses in lower risk industries, the estimated average annual pricing for cyber liability insurance would be around $2,500. This price was derived from examining premiums paid by non-profits and service based businesses with 5 to 50 employees and 1 to 5 million in annual revenues. Key factors affecting pricing include number of employee records, data security protocols, IT infrastructure, and claims history.
Estimated Pricing: $2,500
Business Interruption Insurance
Business interruption insurance provides an essential layer of protection for businesses in high-risk industries like death care services. By covering lost income and extra expenses during temporary closures, it helps ensure these businesses can continue operations and fulfill their important services through difficult situations.
Some key top benefits of business interruption insurance for death care services businesses include covering lost income if the business needs to shut down temporarily due to property damage and paying ongoing operating expenses like payroll, utilities, and rent/mortgage during the shutdown. It also covers additional expenses to continue operations from another location during repairs and helps maintain cash flow. Common use cases where business interruption insurance would provide critical financial support include fire damage causing closure, flood damaging storage facilities, equipment breakdowns preventing services, key employees being injured, and government-mandated pandemic shutdowns.
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Based on average pricing data, business interruption insurance for death care services such as funeral homes and crematories would be estimated around $1.50 – $2.00 per $100 of gross receipts or sales. This pricing assumes an average 30 day indemnity period to account for business interruption. Longer indemnity periods would increase the pricing.
Estimated Pricing: $1.50 – $2.00 per $100 of gross receipts/sales
Employment Practices Liability Insurance
Employment practices liability insurance (EPLI) provides important protection for businesses in the death care services industry. EPLI covers legal fees and settlements for claims made by employees or former employees related to issues like discrimination, wrongful termination, harassment and other workplace violations. It protects companies financially and reputationally during expensive lawsuits. EPLI also estimates an average annual premium of $2,500 for businesses in this industry and covers common claims such as wrongful termination, discrimination, harassment, and retaliation.
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Based on typical pricing models for the death care services industry with NAICS code 8122, the estimated average annual premium for employment practices liability insurance would be around $2,500. This price was derived from analyzing typical payroll sizes, number of employees, past claims experience, and risk factors for businesses in this industry.
Estimated Pricing: $2,500
Directors & Officers Liability Insurance
Directors and officers liability insurance, also known as D&O insurance, protects the personal assets of executives and managers from claims of wrongful acts, errors and omissions. It is an important policy for businesses in many industries, including death care services due to the sensitive nature of their work handling remains and legal/financial matters on behalf of families. Some key benefits of D&O insurance for death care services businesses include protecting directors and officers from personal financial risk in lawsuits, covering legal defense costs, and protecting the company from losses due to court judgements or settlements against executives. Estimated annual pricing for this type of policy in the death care services industry ranges from $5,000-7,000 on average.
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Based on industry research and benchmarks, the estimated average annual pricing for Directors & Officers Liability Insurance for businesses in the death care services industry with NAICS code 8122 would be $5,000-$7,000. This pricing range takes into account factors such as the size and annual revenue of the business, number of locations, prior claims experience, and additional insurance policies also taken out with the same carrier for a multi-policy discount.
Estimated Pricing: $5,000-$7,000
Conclusion
Proper insurance planning tailored to the exposures of death care services businesses can help reduce financial stress and ensure the ability to continue serving communities through difficult times. Consult an experienced insurance agent to determine the optimal policies and coverage amounts needed, maintaining adequate limits to fully cover costs of large claims unique to this industry.