A recent study conducted by insurance broker Gallagher highlights a growing unease among U.S. business owners regarding the adequacy of their business insurance in covering specific losses. The survey, which included responses from 1,000 business owners, revealed that 80% are anxious about their insurance failing to cover events such as extreme weather conditions or cyberattacks.
The survey’s findings indicate that 91% of business owners are particularly concerned about the impact of extreme weather and natural disasters on their operations. Cybersecurity is another major worry, with 69% expressing fears about the potential fallout from cyberattacks. Despite these concerns, only 32% of those surveyed have cyber insurance coverage.
Supply chain disruptions are another significant worry, with 68% of business owners expressing deep concern over potential impacts on their operations. Furthermore, 63% of respondents are anxious about how election outcomes might affect their businesses.
J. Patrick Gallagher, Jr., Chairman, President, and CEO of Gallagher, emphasized the rapid pace of change and the emergence of new risks. He stated, “The world is changing at an unprecedented pace. Each day it seems there are new risks emerging as the next big thing. As we face these challenges head on to help businesses of all sizes, it’s important to constantly consider and evolve the ways in which we mitigate the risks and help protect the things that matter most. Sourcing the right partners to secure tailored protection is a great way to ease those concerns.”
The survey also highlighted a strong interest in artificial intelligence (AI) among business owners, with 81% planning to maintain or increase their AI investments in 2024. Business owners view AI as a means to unlock new growth opportunities and enhance efficiency. However, this enthusiasm is tempered by concerns over AI-related risks. Gallagher noted that balancing growth with robust protection will be essential as businesses navigate the evolving AI landscape.
Specifically, 50% of businesses aim to leverage AI to enhance their IT capabilities, 42% plan to use AI to improve marketing outreach, and 35% expect AI to boost their sales efforts. Smaller businesses, particularly those with 1-50 employees, showed less interest in AI compared to larger enterprises. Interest in AI was notably higher among businesses with more than 1,000 employees, with 89% expressing a strong interest.
Despite the potential benefits of AI, many business owners are wary of its drawbacks. The survey revealed that 37% of participants are concerned about exposing sensitive information, 35% about regulatory risks, and another 35% fear that AI could render their work obsolete.
These widespread concerns have prompted nearly all business owners (96%) to implement risk management strategies or practices. Over the past year, 80% of respondents reported experiencing financial growth, with 27% noting significant gains.
Internal challenges also loom large, particularly in attracting and retaining talent. The survey found that 86% of business owners are at least somewhat concerned about their ability to maintain a skilled workforce. Gallagher concluded, “The heart and soul of an organization lies within its people, and that talent is the driver behind any successful business. Attracting and retaining dynamic and diverse individuals who share your vision will create skilled teams and yield positive business growth.”
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