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Operating A Funeral Home: How To Protect Your Business The Right Way

There comes a day where each and every one of us requires funeral services. For many, it’s hard to even consider end of life issues. But, they do need to be carefully considered. This is where the work of a respectful and caring funeral home business comes into play.

If you are running and operating a funeral home, there is plenty to worry about. From caring for grieving families to giving the best possible services to them, there is more than enough to keep you occupied. However, it’s important that you also consider the efficient running and protection of the business aspects involved.

Though giving great care and services will often be your number one priority, at the end of the day, you are still operating a business. So, it’s crucial the business is operating correctly and you are protected legally – just like any other company. Here’s a look at how to operate and successfully protect your business the right way.

Funeral Home Business Prospects

As mentioned, the funeral industry exists for the very reason that it needs to. There will always be a need for end of life services and professionals to deal with it all on behalf of families and loved ones. The industry is worth around $20bn annually in the US, with around 24 million funerals occurring each year.

No matter what state you are in, then, you will likely be able to make funeral care a successful business. Whether you have started operating or not, check out the rest of these tips to make sure your business is run successfully, safely, and smoothly. There’s plenty to think about.

Plan and Register Your Business

To get started, you need a clear plan on how you are going to operate, how much it will cost you, and how much you need to charge to make money. Research the ingoing and ongoing costs of running a funeral home to ensure you can make it work. In any business, a well-written business plan will change the course of how well your business succeeds.

Then, you need to make sure your business is registered properly. As a funeral home, you would most likely register as an LLC. An LLC is a limited liability company, one of the most common company formations in the USA. This helps keep your liability separate from the business if your business is ever sued, protecting you if anything unfortunate should happen at your funeral home.

Insuring a Funeral Home

As well as being registered as an LLC, there is a need for proper insurance. You can learn more on Balsiger Insurance about the details on funeral home insurance policies. Below, some of the most important insurance policies you need to have in place are briefly discussed.

  • Liability Insurance

General liability insurance covers you in the event of accidents or injuries to the public in your funeral home. The best part is, these policies usually cover whether any given incident was your fault or not. This type of insurance is commonplace in all workplaces with public visits or attendance, making sure that any accidents on-site are covered. If someone trips over your steps or falls off of a broken chair and decides to sue you, you are covered by general liability insurance.

  • Errors & Omissions Insurance

E&O insurance is for professional liability. You will need to take out cover specific to funeral care and mortician work. Professional liability insurance covers you for things directly related to your work, rather than your premises. For example, if someone alleged that you caused injury by poor working practices, you’d need professional liability coverage to help you here.

  • Property Insurance

Any business with property or premises to work from should have property insurance. This covers your property for losses due to fire, flood, or other damages. It also helps cover your contents in case someone breaks items within your funeral home or steals from you. For this level of cover, you’ll want to look for full replacement coverage.

  • Automobile Insurance

Many funerals include the use of vehicles, especially hearses. You will need commercial automobile insurance to keep you covered, just like you would purchase for your private vehicle. The insurance works in much the same way, covering your staff and other parties who may be involved in an accident or collision when your vehicle is involved.

  • Workers’ Compensation

Finally, in many states, it is a legal requirement to hold workers’ compensation insurance. This is the kind of policy that specifically protects your staff in case of injury in the workplace. Most workers’ comp will pay for lost wages and medical bills, or any other work-related financial impact after an injury or condition developed at work.

Register for Taxes

When running a funeral home, you also need to make sure you are paying the right amount of tax to the government, to avoid legal fees, fines, or being forced to cease trading. To register for taxes you will need an EIN, which is easy to acquire and free of charge. LLC taxes are easy to set up, too, simply by following guides on the government’s website. If you are stuck, reach out to a local accountant or legal firm who can give you advice on ensuring your LLC is fully legal and tax registered.

Check on Local Permits

License requirements for funeral homes vary massively by state, region, or county. There may well be licenses needed for your premises as well as specific industry-related licenses. Check with your local town or city’s clerk’s offices, as they will be able to give you the best advice regarding local laws and requirements. Again, failure to register for these permits properly could result in your business being closed down or fined.

Following these steps will ensure that your business is run smoothly and legally, whilst also having adequate coverage in the event of emergencies or accidents. If you have any doubts, reach out to local specialists in funeral insurance and business to get advice on the process. Once this is all done, you can get back to doing what you do best, giving people the funeral they deserve.

Written by Eric

37-year-old who enjoys ferret racing, binge-watching boxed sets and praying. He is exciting and entertaining, but can also be very boring and a bit grumpy.

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