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 Properly Insure a Family Business?

The family business should not just do a business plan or incorporate the business, but it is important to have the right insurance for the business.  It is good to have insurance for the business to protect it from possible disasters like:

  • Natural disasters like fire and etc.
  • Negligent acts committed by employees.
  • Customers being injured on the business property.

With proper insurance, the family business can remain open and not be forced to close due to expensive lawsuits.  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.

Some ways insurance can protect one’s business from common losses experienced by small businesses:

  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 the 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 family business should consider to purchase to protect their business.  So, please speak with your insurance agent to figure out the best commercial insurance coverage for the family business.

The fourth article in the “How to Properly Set up a Family Business” Series.

Donya Zimmerman is a business consultant, mediator, and legal professional with over ten years of experience.  Donya is also a public speaker and aspiring author.  She has a few books in the works that will be published and released in the latter part of 2015. The books will focus on entrepreneurship, small business, and daily devotionals.  She is owner of Family & Community Mediation and Business Consulting (FACMBC) and Powerful Biz Woman (subsidiary of FACMBC). Both are based in Baltimore, Maryland and were established in 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 with the Maryland Daily Examiner Newspaper and the Leadership Girl Newsletter. Donya Zimmerman has made article contributions to the Simply Inspirational Women in Business Journal for 2014 published by Dr. Cheryl Cottle.

If you are thinking about starting your own small business or non-profit organization do not hesitate to contact me because I can show you how to do so. Contact information:;;;;;;

Image courtesy of Stuart Miles at


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