Business Development & Conflict Resolution

We assist individuals with starting their own businesses because small business is key to economic independence and community sustainability.

How to Succeed in Business: Ensure that you have the proper business insurance!

As a business consultant, I have learned through the years that one important matter that my clients forget to think about or talk about is insurance for their business. When I was a practicing attorney, many of my clients were individuals who owned their own businesses and were being sued by dissatisfied customers. The business owners failed to realize and understand that they had to have their business properly set-up to avoid legal lawsuits and other issues.

Here are some of the major problems that many business owners face regarding their business:

  1. The business was not properly incorporated as a legal entity with the proper state agency.
  2. The business did not have any insurance to protect the owner from personal liability.
  3. The business owner did not have the “dream team” to assist them with the legalities of the business.
  4. The “dream team” for small businesses is as follows:
    1. Accountant;
    2. Attorney;
    3. Insurance Agent;
    4. Bookkeeper;
    5. Business Coach;
    6. Banker; and
    7. Mentor.

Based on these issues, the business owner needs to ensure that they have the proper business insurance needed to operate the business in an efficient and effective manner. There are many benefits to having insurance for one’s business. Operating a business is very challenging without one having to worry about major financial loss or monetary loss due to unforeseen and unplanned circumstances.

Here are a few ways how insurance can protect one’s business from many common losses experienced by many business owners:

  1. Protection from property damage.
  2. Business won’t be interrupted.
  3. Will not have to deal with theft, personal liability, or employee injury.

Buying the right commercial insurance coverage certainly makes the difference between losing one’s business to a dissatisfied client in a lawsuit or recovering with minimal business interruption and financial impairment to the company’s operations. Before buying any type of commercial insurance for your business, it is advisable to speak with an insurance agent to figure out which type of insurance will meet the needs of the business.

Here are some of the basic types of commercial insurance to consider for your small business:

  1. Commercial Auto Insurance: This type of insurance is purchased to cover all vehicles that are used for business purposes and business operations.
  2. Property Insurance: This type of insurance protects the business property from possible losses in any way.
  3. Liability Insurance: This type of insurance protects the business assets and personal assets of the business owner from different types of liability.
  4. Business Interruption and Continuation Insurance: This type of insurance provides coverage for business expenses associated with running a business, i.e. utility bills and payroll. This type of insurance comes into play when the business is out of operation for a long period of time due to fire or reasons beyond the owner’s control.
  5. Professional Liability Insurance: Better known as Errors & Omissions insurance provides protection to the business for damages as a result of professional advisor, employee, or board member due to negligence or failure to use due diligence.

There are many other types of insurance coverage a small business owner should consider to purchase to protect their business. So, please speak with your insurance agent to figure out the best commercial insurance coverage for your small business.

Donya Zimmerman is a business consultant, mediator, and legal professional with over ten years of experience.  She is owner of Family & Community Mediation and Business Consulting (FACMBC) based in Baltimore, Maryland and has been in business since 2013. Services provided by FACMBC:  Mediation and Conflict Resolution Services; Business Registration Assistance (Limited Liability Company, Corporation, S-Corp, Limited Liability Partnership, etc.); Business Plan Drafting Assistance; Business Certification Assistance (MBE, WOSB, 8A, 501(c) (3), Hub Zone, etc.); and Business Organization Assistance. She is also a contributing writer to the Maryland Daily Examiner Newspaper. Contact information:;;;;


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