Business Owners Express Concern Over Insurance Coverage

Gallagher, a global insurance brokerage, risk management, and consulting services company, conducted a survey of 1,000 American business owners, uncovering widespread anxiety about the adequacy of their business insurance. The survey found that 80% of business owners are worried their insurance will not cover specific events or losses.

The primary concerns include extreme weather conditions (91%), cyber-attacks (69%), and supply chain disruptions (68%). Notably, only 32% of businesses have cyber coverage despite high levels of concern. Additionally, 63% of business owners are very concerned about the impact of U.S. election results on their operations.

J. Patrick Gallagher, Jr., Chairman, President, and CEO of Gallagher, emphasized the need for evolving risk mitigation strategies in the face of rapidly changing global risks. He suggested that partnering with the right insurance providers to secure tailored protection can help ease these concerns.

The survey also revealed significant interest in artificial intelligence (AI) investments, with 81% of business owners planning to maintain or increase their AI spending in 2024. While AI presents growth opportunities, it also brings new risks such as exposure of sensitive information and regulatory challenges. Small businesses showed less interest in AI compared to larger enterprises.

Additionally, the survey highlighted the importance of talent attraction and retention, with 86% of business owners expressing concerns about their ability to maintain a skilled workforce. Effective talent management is seen as crucial for sustaining business growth and navigating risks.