The most common business insurance mistakes include underinsuring or overinsuring, neglecting to update policies as the business evolves, and misunderstanding policy exclusions. Many businesses fail to assess their actual risks, leading to gaps in coverage for areas like cyber liability or professional errors. Relying solely on general liability insurance and ignoring specific needs, such as workers’ compensation or property insurance, is another frequent error. Businesses often underestimate the value of inventory or equipment, leaving them inadequately covered in case of loss. Additionally, failing to shop around for competitive rates or review policies annually can result in outdated or overpriced coverage. Misclassifying employees or neglecting to inform insurers of operational changes can lead to claim denials. Finally, skipping business interruption insurance or failing to align coverage with contract requirements can expose businesses to significant financial risks. Avoiding these mistakes requires careful planning, consultation, and regular policy reviews.