How often should funeral homes review their insurance policies?

Reviewing insurance policies every year for adequacy is important for funeral homes to ensure they remain adequately protected as circumstances and liabilities can change over time. Annual reviews help identify any gaps in coverage, accommodate changes in services offered, adjust for inflation, and address changes in regulations or industry standards.

Frequent assessments of insurance needs, particularly in a profession that may experience fluctuations in risks due to a variety of factors, are crucial for financial security and compliance with industry standards. Regular checks can help the funeral home stay prepared for unforeseen events or liabilities that may arise, thereby preventing potential financial pitfalls.

In contrast, reviewing insurance policies every five years or only when renewing the business license may not be sufficient to keep up with the rapid changes that can occur in the funeral industry. Additionally, waiting until a complaint is filed does not proactively address the need for coverage adjustments and could leave the funeral home unprotected during critical times.