Is Your Family Business Properly Insured?

July 7, 2015

~by Donya Zimmerman~


To protect your family business, you’ll need to do more than a business plan or incorporate the business. You’ll also want to have the right insurance for the business. It can protect your business from possible disasters:

  • 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 having to worry about major financial loss or monetary loss due to unforeseen and unplanned circumstances.   

Insurance can protect your business from losses commonly experienced by small businesses:

  • Protection from property damage
  • Business won’t be interrupted
  • Will not have to deal with theft, personal liability or employee injury
Protect Your Family Business With Commercial Auto Insurance

Protect Your Family Business With Commercial Auto Insurance


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.

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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: Protects the business property from a number of possible losses.
  3. Liability Insurance: Protects the business assets and personal assets of the business owner from different types of liability.
  4. Business Interruption and Continuation 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, it provides protection to the business for damages when a professional advisor, employee or board member is negligent or fails to use due diligence.

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

This is the 4th article in my Starting a Family Business series.

Stay tuned for the final article in this series.


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Meet the Author: Donya Zimmerman

Donya Zimmerman

Donya Zimmerman

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 is owner of Family & Community Mediation and Business Consulting (FACMBC) and Powerful Biz Woman (subsidiary of FACMBC), both of which are based in Baltimore, MD.

Services provided by FACMBC:  Mediation and Conflict Resolution Services; Business Registration Assistance; Business Plan Drafting Assistance; Business Certification Assistance; and Business Organization Assistance. 

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.

For more information about Donya:



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