Most business owners (80%) are worried their business insurance will not cover a specific event or loss, resulting in a decrease in business security, according to a survey of 1,000 American business owners by Gallagher. The survey revealed that business owners are most worried about:
- Extreme Weather Conditions: 91% worry about the effect of extreme weather conditions or natural disasters on their business.
- Cyber-Attacks: 69% expressed concern about the impact of a cyber-attack on their business, yet only 32% of business owners surveyed have cyber coverage.
- Supply Chain Disruptions: 68% expressed extreme concern about supply chain disruptions and how this will affect their business.
- U.S. Election: 63% are very concerned about the election results affecting their business.
“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. Sourcing the right partners to secure tailored protection is a great way to ease those concerns.”
AI Growth Comes With AI Risk
The survey found that 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, and helping to maintain business security.
- Growth: 50% of the businesses investing in AI are betting on the technology to boost their IT capabilities. Beyond that, 42% are looking to adopt AI to improve their outreach through marketing.
- Risk: Even with the positive benefits of the technology, many are concerned about its potential negative effects. These range from exposing sensitive information and regulatory risks to making their work obsolete.
Strategic Talent Attraction And Retention Can Lessen 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 96% of business owners to put risk management strategies or practices in place for their businesses.
While business owners are aware of the many external factors that could impact their business, there is one internal factor that owners are also concerned about: talent. The survey revealed that 86% of business owners felt at least somewhat concerned 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.”
