Who needs this bond?

Funeral homes that offer preneed funeral arrangements or preneed funeral insurance may be required to carry a preneed funeral bond, depending on the state and the licensing rules they must follow. This bond is meant to protect customers who prepay for funeral services by helping ensure those funds are handled appropriately and the funeral home follows through on the contract.

Cemetery owners may also be required to carry a cemetery bond. This bond helps ensure the cemetery is properly maintained and that graves are protected, in line with local regulatory requirements.

In general, you’ll need this bond when a licensing or regulatory agency requires it as part of operating, obtaining a license, or renewing a license for preneed funeral services or cemetery operations.

How much does this bond cost?

The price you pay is a premium that is usually a small percentage of the required bond amount. Rates commonly fall between 1% and 5% of the bond amount.

Your exact cost depends on the bond amount required by the regulating agency and the rate offered by the surety company. The rate is typically based on factors like your credit score, overall financial strength, and industry experience. Applicants with stronger credit and finances generally qualify for lower rates, while applicants with credit challenges may pay more.

How do I get this bond?

Start by confirming the bond requirement from your licensing paperwork or the agency that regulates funeral homes or cemeteries in your area. The agency sets the required bond amount and the bond type.

Next, you apply through a surety company. Most applications involve a credit check and a review of basic financial information and business background. Once approved and the premium is paid, the bond is issued so you can file it with the required agency as part of your licensing or renewal process.

Can I get this bond with bad credit?

Bad credit does not automatically prevent you from getting a preneed funeral or cemetery bond. Many applicants with lower credit scores or other financial issues can still qualify, although the premium rate is often higher.

Because underwriting commonly includes a credit check and a review of financial strength, providing complete and accurate information helps the surety evaluate your application as fairly as possible.

How fast can I get this bond?

Timing depends on how quickly the application can be reviewed. Some applications can move quickly when the information is straightforward, while others take longer if additional review is needed due to credit, financials, or other underwriting questions.

Having your licensing requirements and business information ready can help avoid delays and speed up the process of issuing the bond once approved.

If you’re unsure which bond you need, BOSS Bonds can review your licensing paperwork and help identify the correct bond at no cost.