Business Owners Cite Top Worries, Including Uninsured Risks

Extreme weather events were a top concern of business owners, followed by cyber, supply chain and U.S. elections, according to the survey from Gallagher.
By: | June 13, 2024
Topics: News | Risk Management
business owner worries

U.S. business owners are increasingly concerned about business risks in the current environment, and 80% are worried that their business insurance will not cover a specific event or loss, according to a recent survey by Gallagher.

The survey of 1,000 business owners highlighted top worries ranging from extreme weather to the U.S. elections.

Extreme weather was the top concern of business owners, cited by 91% of respondents. Cyberattacks (69%), supply chain disruptions (68%), and the impact of U.S. election results (63%) followed, the survey found.

Despite the high level of concern about cyberattacks, only 32% of the surveyed business owners have cyber coverage, Gallagher noted.

“The world is changing at an unprecedented pace. Each day it seems there are new risks emerging as the next big thing,” said J. Patrick Gallagher Jr., chairman, president and CEO. “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.”

The survey also revealed an overwhelming majority (81%) of business owners plan to maintain or increase artificial intelligence investments in 2024, despite the potential risks associated with the technology.

Half of the businesses investing in AI aim to boost their IT capabilities, while others are looking to use AI tools to improve marketing (42%) and sales (35%).

However, concerns about exposing sensitive information (37%), regulatory risks (35%), and job obsolescence (35%) persist when it comes to AI, the survey found.

Interestingly, smaller businesses with 1-50 employees (52%) showed less interest in AI compared to larger companies with 51-100 employees (87%), 101-500 employees (87%), 501-1,000 employees (93%), and over 1,000 employees (89%), the survey showed.

The survey also highlighted the importance of talent attraction and retention in mitigating business risks.

Despite 80% of respondents experiencing financial growth over the past year, 86% expressed concern about their ability to attract and retain talent.

“The heart and soul of an organization lies within its people and that talent is the driver behind any successful business,” Gallagher said. “Attracting and retaining dynamic and diverse individuals who share your vision will create skilled teams and yield positive business growth.”

A majority of business owners (53%) said they were more likely to be kept up at night worrying about their business than personal matters, which is lower than what was reported last year (58%), the survey found.

Nearly all (98%) have some form of business insurance to keep their company protected. A business owners’ policy is the top type of insurance policy held (47%), followed by property insurance (44%), and professional liability insurance (41%), according to the survey. In 2023, 84% with business-related insurance policies made a claim for their business in 2023.

To learn more about the survey, visit the Gallagher website.

The R&I Editorial Team can be reached at [email protected].

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