Running a funeral home is about more than providing compassionate care—it’s about operating a highly specialized business with no room for unexpected downtime. Yet, when disaster strikes, whether it’s a fire, flood, storm damage, or even a health-related shutdown, many funeral homes realize they aren’t as prepared as they thought. Business interruption insurance is often overlooked, but it’s one of the most critical coverages for the long-term stability of your operation.
At Branco Insurance Group, we work closely with funeral homes across the region to make sure they’re not only insured—but fully protected when the unexpected occurs. Let’s take a deeper look at what business interruption insurance covers, why it’s essential for funeral professionals, and how you can tailor it to match the needs of your unique operation.
What Is Business Interruption Insurance?
Business interruption insurance, also known as business income insurance, provides financial protection when your funeral home must temporarily shut down due to a covered peril. While your property insurance may cover physical damage to the building, it doesn’t help you recover lost income or ongoing expenses during the downtime. That’s where business interruption coverage steps in.
It typically covers:
- Lost income based on past financial records
- Fixed operating expenses, such as payroll, utilities, and rent
- Temporary relocation costs, if you must operate from a different location
- Loan payments or leases that still need to be made
- Taxes that continue to accrue
- Training costs if employees need to learn new systems or procedures due to temporary changes
Real-World Scenarios: When Funeral Homes Are Forced to Close
You might assume funeral homes rarely shut down. After all, people rely on these services no matter the circumstances. But reality paints a different picture. Here are some real-world examples of when a business interruption policy became a financial lifeline:
1. Fire or Smoke Damage
A small electrical fire in the embalming room can result in smoke damage throughout the building, requiring professional cleaning, inspection, and renovation. You can’t risk hosting services in a damaged environment—so you’re closed for a few weeks or longer.
2. Storm and Flooding Events
If a major storm hits your region and damages the roof or floods the preparation rooms, your operations come to a halt. Even if you can run basic services, water damage might force crematory or prep areas offline.
3. Vehicle Accidents
If your hearse or other key transport vehicles are totaled in an accident, and no replacement is immediately available, you may have to delay services or outsource transport—cutting into your bottom line.
4. Health Department Shutdowns
During public health emergencies (like COVID-19), funeral homes were among the hardest-hit industries due to capacity restrictions and forced closures. While pandemics may not always be covered, similar biohazard incidents—such as contamination in your prep area—may be.
5. Structural Failures or Equipment Malfunctions
A burst pipe in the basement or a failed HVAC system in the middle of summer could force temporary closure for repairs, especially if your refrigeration or cremation equipment is impacted.
Understanding Your Coverage Limits
One of the most common mistakes funeral home owners make is assuming their business interruption insurance is automatically “enough.” But many policies are based on past income—without considering upcoming services, prepaid arrangements, or recent growth.
To avoid being underinsured:
- Review your current business income: Look at your busiest and slowest seasons.
- Consider future growth: Have you added new services, like cremation or green burial?
- Factor in prepaid funerals: Would you be at risk of refunding any contracts?
- Evaluate contract obligations: Will downtime breach service contracts with families?
At Branco Insurance Group, we help you review these specifics to determine the right coverage period and payout structure. Most policies allow for coverage up to 12 months, but some businesses need extended coverage for long repair timelines.
Extra Expense Coverage: Your Secret Weapon
While business income insurance replaces lost revenue, extra expense coverage helps you adapt and keep going. For example:
- Renting a chapel space or working from another funeral home
Why Choose Branco Insurance Group?
We’re a local agency with deep roots in the community and a commitment to protecting Connecticut businesses. At Branco Insurance Group, we take a personalized approach—getting to know your business so we can recommend the right coverage, not just a one-size-fits-all policy.
Our team is here to walk you through every step of the insurance process, from risk assessment to policy management and claims support. We believe in clear communication, responsive service, and doing what’s right for our clients—every single time.
Let’s Protect What You’ve Built
You’ve built your funeral home on trust and compassion. Let us help you protect that legacy.
📞 Call us today at 203-723-8500 or visit brancoinsurancegroup.com to schedule a consultation.
