Michigan — Cremation Services Bond
Arranging financing for a Michigan crematorium? Section 456.206 uses surety and cash security to protect contracted cremations when qualifying property is mortgaged or otherwise encumbered. Match that requirement before applying through The Southern Agency.
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- Recorded state
- Michigan
- Bond type
- Funeral / Cremation Services Bond
- Category
- Professional & occupational licenses
What this bond does
This statutory security is tied to qualifying crematorium property outside a columbarium. It is not described as a blanket bond for every cremation service provider or every prepaid funeral contract.
- Who needs it
- Cremation corporations and property or financing parties arranging the security specified in MCL 456.206. The statute allows the corporation, landlord, mortgagee or lender to file and maintain it; the principal must match the actual arrangement.
- Who it protects
- Both the surety and cash bonds are for the benefit of the State of Michigan to ensure faithful performance of contracted cremations and disposition of cremated remains, by or on behalf of the corporation owning the crematorium.
Your bond option
This is the option on record for this bond.
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The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.
Sources
- Michigan MCL456.206: crematorium property and security (opens in a new tab)Checked October 21, 2026
- Michigan LARA: cemeteries and crematory regulation (opens in a new tab)Checked October 21, 2026
Have these ready
- Crematorium corporation and the party responsible for filing the security.
- Relevant property/financing arrangement and written Section 456.206 request.
- Required surety component, companion cash security and state-benefit wording.
- Accepted form and effective dates, kept separate from any property lease term.
Questions about this bond
Does every Michigan cremation provider need this security?
Section 456.206 ties these bonds to the specified property encumbrance arrangement. It does not state a blanket requirement for every cremation provider; establish the actual basis of the request.
Is $100,000 necessarily the surety bond amount?
The statute requires both surety and cash bonds and sets their combined total at no less than $100,000. Use the accepted arrangement rather than assigning the full total to one component automatically.
Does the five-year reference set the bond term?
No. The subsection says a qualifying property lease must last at least five years. That is a lease provision, not a term label for this public surety option.