Majority of Business Owners Worry Insurance Won’t Cover Losses: Survey

A survey of U.S. business owners by Gallagher's reveals concerns about insurance coverage gaps and the impact of emerging risks on their operations.
By: | June 28, 2024

Business owners are concerned their business insurance policies may not cover specific events or losses and extreme weather conditions, cyber-attacks, and supply chain disruptions topping the list of business owner worries, according to a survey by Gallagher.

The survey of 1,000 U.S. business owners found that 80% are worried their business insurance will not cover a specific event or loss.

In addition, 91% of respondents worry about the impact of extreme weather conditions or natural disasters on their business. Cyberattacks were a concern for 69% of business owners, but only 32% have cyber coverage, the survey found. Supply chain disruptions were a major concern for 68% of respondents, while 63% were apprehensive about the impact of election results on their businesses.

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

The survey also highlighted the growth and risk associated with AI integration.

A significant 81% of business owners plan to maintain or increase AI investments in 2024. While 50% of businesses investing in AI aim to enhance their IT capabilities, business owners expressed concerns about exposing sensitive information (37%), regulatory risks (35%), and making their work obsolete (35%).

The survey revealed that 80% of respondents experienced financial growth over the last 12 months, with 27% witnessing significant growth. This growth, coupled with concerns about their business, led 96% of business owners to implement risk management strategies or practices, according to the survey. The ability to attract and retain talent was also a concern for 86% of business owners.

View the survey results on Gallagher’s website. &

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

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