According to Small Business Administration, only 50 percent of companies survive the first five years. Running a business is tough, but what makes it more difficult are the costs that you could have avoided only if you’ve covered yourself with insurance.

However, with so many insurance policies, it’s easy to feel overwhelmed, increasing the risk of making hasty and poor decisions. To avoid that, here are 20 expert insurance tips to keep in mind:

  1. Get general liability insurance for contractors.If you don’t have enough money to pay for insurance, at the very least, secure a general liability insurance coverage. It covers all the possible errors and damages arising from doing your business.
  2. Know the state requirements.Insurance for businesses may be mandatory in many states. It’s your responsibility to know what these policies are and the minimum coverage.
  3. Have a workers’ compensation coverage. All jobs carry certain risks, and it’s our duty to make sure your employees will receive adequate compensation in case they suffer from chronic or acute injury while performing their tasks.
  4. Determine your needs. When it comes to business insurance, it’s not so much about the kinds but their value. Get help from providers to know which ones your business needs the most.
  5. Cover sufficiently. There’s no point in paying less when the coverage isn’t enough to meet your potential needs. Rather than focusing on costs, think of the coverage. Ensure it’s enough.
  6. Insure against product defects. If you’re a manufacturer, you need a product liability insurance coverage, which will cover possible costs of litigations and settlements that may occur due to consumer lawsuits.
  7. Add adequate protection for your home. If you’re a work-at-home entrepreneur, or keeping an inventory in the house, you can insure these assets with home insurance. Note, though, home insurance policies come in different forms. Find one that’s willing to protect your business-related properties.
  8. Protect your income with debt liability insurance. This is helpful when you accrue receivables. The coverage sees to it you can recoup losses due to non-payments from your clients.
  9. Cover your vehicles. In the country, one cannot drive a vehicle without auto insurance. Providers, however, may give you a different quote if you’re using the vehicle for business.
  10. Insure goods in transit. If you’re a seller that delivers products across the country (or even internationally), it gives your business an edge if you have insurance for in-transit goods. It simply means if something happens to your products while still on the road, you can file a claim. The good thing about this is it’s possible to pass the costs to your consumers.
  11. Provide a group health plan. If you’re a company that employs more than fifty full-time workers, you are required to provide health coverage to avoid a tax penalty. But even if you’re a startup, you can still find providers as insurance companies are highly encouraged by the government to extend services to small businesses.
  12. Always review your policy. Business dynamics change all the time, and your policies should reflect your ever-changing needs and preferences. Make sure you can revisit your coverage annually.
  13. Choose a reputable provider. It goes without saying you need a provider with a reliable, stellar track record in insurance industry. But it also works to your advantage to look for one specific to your field and can provide different insurance policies. It saves you the hassle of monitoring your different kinds of coverage.
  14. Always be on the lookout. Know the newest insurance types for businesses and assess if these are what you need. Evaluate your provider regularly as well. Your loyalty should be on the coverage, not on the insurance company.
  15. Ensure you’re covered in terms of cyberattacks. Small businesses are some of the most vulnerable groups in cyberattacks, and you can lose all your money. It’s high time to spend on a coverage that protects you against such losses.
  16. Extend your coverage to independent contractors. While this is not mandatory – and you can look for those that already have insurance policies – it pays to extend insurance coverage to freelancers. In the end, you are responsible for their performance and final product as long as they are your employ.
  17. Provide adequate health insurance for your family. When you or any of your family members gets sick, it’s easy to dip your hands on your business coffers. Before you know it, you’ve drained it. Reduce such risk by also providing your family a health insurance policy.
  18. Don’t immediately jump on combos. It’s normal for companies to give you insurance bundles. For example, auto insurance may be packaged with health insurance. It is not always economical, and you may be paying for insufficient or unnecessary coverage.
  19. Choose a good insurance policy for your employees.For the sake of your employees, pick one that allows them to continue their plan at least for a few months after their resignation. This way, they can enjoy protection on days when they’re transitioning between jobs.
  20. Know the successful claim rate. Besides adequate coverage, you should also ensure you can file and get your claim quickly. When choosing your insurance company, learn their claim rate as well.