Business owners are focusing on preparing for the unforeseeable as they worry their business insurance will not cover specific losses, a recent study by insurance broker Gallagher has found.
The survey found that 91% of business owners worry about the threat of extreme weather conditions or natural disasters and the effect on their business. While 69% expressed concern about the impact of a cyber-attack on their business.
Yet only 32% of business owners surveyed have cyber coverage, the broker noted.
Additionally, 68% of the participants expressed extreme concern about supply chain disruptions and how this will affect their business; and 63% said to be very concerned about the election results affecting their business.
J. Patrick Gallagher, Jr., Chairman, President and CEO, commented: “The world is changing at an unprecedented pace. Each day it seems there are new risks emerging as the next big thing.
“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.”
The survey also found that 81% of business owners are looking to maintain or even increase artificial intelligence (AI) investments in 2024, aiming to unlock new avenues for growth and efficiencies.
But with AI growth comes AI risks, therefore, sustained growth coupled with robust protection will be paramount for navigating this evolving landscape effectively, Gallagher highlighted.
50% of the businesses are betting on AI technology to boost their IT capabilities, 42% are looking to adopt AI to improve their outreach through marketing, and 35% their sales.
Small businesses with between 1-50 employees, equal to 52%, said to be less interested in AI than their larger counterpart. The larger the business, the larger the percentage, with businesses of +1,000 employees, 89%, being more interested in AI.
Despite the positive benefits AI technology could bring, many are concerned about its potential negative effects, 37% of the participants are worried about exposing sensitive information, 35% about regulatory risks, and 35% it would make their work obsolete.
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.
Over the last 12 months 80% of respondents said to have experienced financial growth, including 27% who saw significant growth.
While business owners are aware of the many external factors that could impact their business, talent is one internal factor that owners are also concerned about.
The survey revealed that 86% of business owners felt at least somewhat concerned about their ability to attract and retain talent.
Gallagher concluded: “The heart and soul of an organisation lies within its people and that talent is the driver behind any successful business.
“Attracting and retaining dynamic and diverse individuals who share your vision will create skilled teams and yield positive business growth.”
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.