June 18, 2024
A survey of 1,000 American business owners conducted by Gallagher has found that 80% are worried their business insurance will not cover a specific event or loss.
As far as the risks business owners are most concerned about, 91% worry about the threat of extreme weather conditions of natural disasters and the effect on their businesses; 69% are concerned about the impact of a cyberattack on their businesses, although only 32% of business owners surveyed have cyber coverage; 68% express concern about how supply chain disruption would affect their business; and 63% of respondents are concerned about the U.S. election results affecting their business.
Artificial Intelligence (AI) and Risk
According to Gallagher’s survey, “An overwhelming majority (81%) of business owners are looking to maintain or even increase AI investments in 2024. With the continued integration of AI, businesses are poised to unlock new avenues for growth and efficiencies. Yet, this expansion also amplifies additional risk exposures. Sustained growth coupled with robust protection will be paramount for navigating this evolving landscape effectively.”
Furthermore, “50% of businesses investing in AI are betting on the technology to boost their IT capabilities. Beyond that, many are looking to adopt AI to improve their outreach through marketing (42%), and sales (35%), putting AI to work to help the businesses grow.” Smaller businesses are less interested in AI than their larger counterparts.
As far as risk Gallagher says that “even with the positive benefits of the technology, many are concerned about its potential negative effects, ranging from exposing sensitive information (37%) and regulatory risks (35%), to making their work obsolete (35%).”
Talent Attraction and Business Risk
“A majority (80%) of respondents experienced financial growth over the last 12 months, including 27% who saw significant growth. Concerns about their business and growth have led nearly all business owners (96%) to put risk management strategies or practices in place for their businesses.” Furthermore, “The survey revealed that 86% of business owners felt at least somewhat concerned about their ability to attract and retain talent.”