If you follow our blogs (which everyone should) you probably saw that last week we discussed the different types of property insurance that every Funeral Home should have; if you missed it click here. That blog received such great attention and feedback, that we have decided to follow it up, with a blog focusing on Commercial Automobile Insurance for Funeral Home Owners.
You probably think that a Commercial Auto Policy would be a simple, “one size fits all” type of insurance for all Funeral Homes. Although there are aspects to every commercial auto policy that are the same, such as mandatory liability coverage, every policy should be customized to reflect your specific business needs. It is important that you are not paying for coverage that you do not need while still protecting your company with the correct insurance.
In a lot of ways funeral director’s auto insurance is similar to the types of car insurance you have on your personal vehicle or any other commercial vehicle. Commercial auto insurance for your funeral home should include liability coverage, medical payments, comprehensive, collision and uninsured motorist coverage. Policy limits can be chosen based on your individual needs which your agent can review with you. You’ll want to include these coverage on all of your company vehicles such as hearses, limos, and other business-owned vehicles. The good news is that specialty auto policies are available for funeral directors that provide the benefits of a traditional commercial auto policy but at a discounted price for vehicles specifically used in funerals. Insurance programs and agents that specialize in funeral homes recognize that vehicles being used strictly for processions, such as limos and hearses, have a reduced risk of getting into accidents because they are usually being driven at slow speeds. Your insurance package should reflect insurance discounts for your funeral vehicles.
For many Funeral Homes, this type of basic coverage is enough, but often extra protection is needed such as Hired and Non-owned Auto Liability. Does your funeral home frequently rent vehicles? Hired Auto Liability is insurance that was created for businesses to rent or hire vehicles and be protected from any type of damages or lawsuits. If your Funeral Home rents a few limos to accommodate a bigger ceremony and there was an accident, Hired Auto Liability would provide you with the type of coverage you need. Do you sometimes ask employees to use their own vehicles for business purposes, such as going to the post office, the bank, picking up office supplies, or dropping off items to clients’ homes? In this case, you would need Non-owned Auto Liability which protects your business if you get sued for anyone driving a vehicle not owned by you in the course of your business or their employment for you.
If your Funeral Home offers Valet Service or if you move cars to place them in a processional line, you should really consider adding Garage Keepers Insurance. Yes, we know you are not an auto repair garage but similar to mechanics driving customers’ cars, funeral homes are also at risk of causing damages when driving customers’ or visitors’ vehicles. Garage Keepers Insurance provides comprehensive and collision coverage for a car that is left in your “care custody and control” if it’s not owned by you, your employees, or your business. Essentially, if your Valet or employee is parking the car of a guest and hits another vehicle, your insurance would cover the damages caused to their vehicle.
Funeral Homes have a huge auto liability risk. It involves very expensive vehicles frequently transporting large groups of people. It is really important that as a Funeral Home Owner you understand and seek out the proper insurance for your business needs. Please remember that we are always here to help and answer any questions you may have. We also represent numerous insurance companies that have specialty policies designed to protect companies like yours. Please contact us today for a quote 401-723-8510.
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