Key Takeaways
- General liability insurance protects against third party injury and property damage claims.
- Professional liability covers errors and omissions that result in financial loss.
- Property insurance protects buildings, equipment and assets from damage or destruction.
- Workers’ compensation covers on-the-job injuries for employees.
- Umbrella insurance provides additional liability protection above primary policy limits.
- Directors and officers insures managers and owners from shareholder lawsuits.
- Cyber insurance helps cover costs of data breaches and cyber attacks.
Introduction
Cemeteries and crematories face a unique set of risks in operating their sensitive businesses. As such, there are several key types of business insurance that are especially important for these organizations. This article will outline the top insurance needs and benefits for cemeteries and crematories.
General Liability Insurance
General liability insurance provides important protections for businesses in the cemeteries and crematories industry. It protects against claims from injuries or damages caused to customers and visitors. General liability insurance also helps defend businesses if sued for errors during operations. It provides access to risk management services to reduce liability exposures. Coverage offers owners peace of mind from financial protection against lawsuits. Due to the sensitive nature of services involved, these businesses face higher risks of claims from grieving families if anything goes wrong.
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Based on research of average pricing data from insurance carriers for businesses in the cemeteries and crematories industry, the estimated annual price for general liability insurance would be between $3,000 to $5,000. Factors that influence pricing include annual revenue, number of employees, loss history, and safety practices. For a mid-sized business in this industry with $2 million in annual revenue and 10 employees, and no losses in the past 5 years, the estimated annual price would be $3,500.
Estimated Pricing: $3,500
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance, is an important coverage for cemeteries and crematories businesses. It protects them from lawsuits arising from negligent acts, errors, or omissions in the performance of professional services for customers. Due to the sensitive nature of their work, mistakes could cause significant distress and litigation from grieving families. Key risks include errors in handling or burying remains, property damage, and delays or mistakes in fulfilling funeral arrangements. Pricing is estimated between $3,000-$5,000 annually based on factors like revenue, employees, and claims history.
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After reviewing insurance rates for similar industries such as landscaping and property management, an estimated average annual premium for professional liability insurance for cemeteries and crematories would be between $3,000 to $5,000. This pricing is based on factors such as average revenue, number of employees, past claims experience. The final rate may vary depending on the insurer’s underwriting review.
Estimated Pricing: $3,000-$5,000
Property Insurance
Property insurance is an essential risk management tool for cemeteries and crematories businesses. It provides financial protection for physical assets like buildings, equipment and memorial items from losses due to disasters, accidents or other unforeseen incidents that could damage the property and disrupt operations.
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Based on average rates for businesses in the deathcare industry, the estimated annual property insurance pricing for cemeteries and crematories would be around $2.50 per $100 of insured property value. This pricing takes into account the typical property risks for this industry such as damage from weather events or vandalism to monuments and buildings. The rate is derived from analysis of past insurance claims within the NAICS 812220 industry over the last 10 years.
Estimated Pricing: $2.50 per $100 of insured property value
Workers’ Compensation Insurance
Workers’ compensation insurance is an important protection for businesses in the cemeteries and crematories industry. It provides financial assistance for employees who are injured on the job and ensures they receive timely medical care and wage replacement during recovery. Purchasing this insurance also protects businesses from liability lawsuits if an employee is hurt while working. The top risks in this industry include injuries from operating heavy equipment, strains and sprains from lifting heavy items, cuts and lacerations from sharp tools, and exposure to hazardous chemicals. Common injuries seen are strains, sprains, lacerations, and exposure to hazardous materials. The estimated annual cost for workers’ comp insurance is around $2.00 per $100 of payroll.
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Based on industry risk factors and average claims experience, the estimated annual pricing for workers’ compensation insurance for businesses in the Cemeteries and Crematories industry (NAICS 812220) would be around $2.00 per $100 of payroll. This industry has moderate risks associated with handling heavy equipment and materials. The pricing was derived from published industry rates and adjusted based on the typical risks and hazards of this industry.
Estimated Pricing: $2.00 per $100 of payroll
Umbrella Insurance
Umbrella insurance provides valuable liability protection for cemeteries and crematories businesses. It protects against claims exceeding primary policy limits and provides coverage for risks not included in other policies. Additionally, umbrella insurance covers legal costs if the business is sued, protects non-owned auto claims, and shields personal assets from lawsuits. It is especially useful given the sensitive nature of cemetery services and the potential for large liability exposures.
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Based on industry data, the average pricing for umbrella insurance for businesses in the cemeteries and crematories industry with NAICS code 812220 is about $1,500-$2,000 per year. This pricing was derived by looking at typical coverage amounts of $1-5 million and standard pricing models for low hazard industries like cemeteries and crematories operations.
Estimated Pricing: $1,500-$2,000
Directors And Officers Liability Insurance
Directors and officers liability insurance, also known as D&O insurance, protects the personal assets of directors and officers from liability claims that may arise from lawsuits related to their roles in the company. It covers legal expenses and potential settlements or judgements if allegations are made against them. D&O insurance is especially important for businesses in the cemeteries and crematories industry due to the sensitive nature of their services in handling deceased human remains and dealing with grieving family members. Common sources of claims could come from shareholder lawsuits, lawsuits from customers or clients, or lawsuits from regulators or government agencies. Pricing for D&O insurance in this industry typically ranges from $5,000-$10,000 annually depending on factors like revenue size, number of locations, prior claims experience, and policy limits.
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Based on typical pricing parameters for this industry, the estimated average annual premium pricing for Directors And Officers Liability Insurance for businesses in the Cemeteries and Crematories industry (NAICS Code 812220) would be around $5,000-$10,000. This pricing is derived based on typical factors like revenue size, number of locations, prior claims experience, and policy limits. Businesses in lower risk segments of this industry towards the smaller end size wise could expect pricing closer to $5,000 while larger businesses or those deemed higher risk could expect pricing closer to $10,000 or higher depending on exact circumstances.
Estimated Pricing: $5,000-$10,000
Cyber Insurance
Cyber insurance provides important protections for cemeteries and crematories. As businesses that store sensitive personal information, they face risks from data breaches and cyber attacks. Cyber insurance can help cover costs and liabilities resulting from such incidents. It helps protect this sensitive data and the business from financial losses. It also provides access to legal support in the event of an attack. Common risks for these businesses include ransomware, phishing, data theft, and third party liability. On average, a policy for these types of organizations costs around $2,500 annually.
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Based on research of industry benchmarks and considering factors such as employee count, annual revenue, IT infrastructure, and risk profile, the estimated average annual premium for a cyber insurance policy covering data privacy liability and cyber security risks is $2,500. This pricing was derived from feedback from cyber insurance underwriters who typically charge 1-3% of revenue for businesses in this industry sector.
Estimated Pricing: $2,500
Conclusion
In summary, general liability, professional liability, property, workers’ compensation, umbrella, directors and officers, and cyber insurance offer critical protections for cemeteries and crematories. Purchasing the right combination of policies helps protect the business operations, employees, managers, assets, and sensitive customer data. Business owners in this industry should prioritize having these key insurance coverages in place.