Gallagher, a global insurance brokerage, risk management and consulting services company, recently conducted a survey of 1,000 U.S. business owners, revealing that many are very worried that external forces will affect their businesses over the next 12 months, including supply chain disruptions (69%), severe weather (69%), and cyber-attacks (72%). These concerns have prompted U.S. business owners to take proactive measures to protect their businesses in an era of increased uncertainty.

What's more, among U.S. business owners with insurance coverage, nearly 87% made a claim in 2024. For most (73%), each of those claims was $25,000 or more, but only some of those claims were covered by various policies, including ones related to property (29%), employment practices liability (28%), cyber (27%), and flood insurance (27%).

Defending against cyber-attacks and AI

U.S. business owners' worry over a cyber-attack impacting their business has grown over the last year. The survey found that 72% of U.S. business owners are very concerned that an attack will affect their business over the next 12 months, up from 69% in 2024. As a response, more than a third (36%) of U.S. business owners would like to acquire or expand insurance coverage for cyber-attacks.

On top of that, almost all U.S. business owners (93%) are at least somewhat worried that AI will affect their business over the next 12 months, compared to 85% who said the same last year. As businesses around the world grapple with the opportunities and challenges of using AI, nearly all U.S. business owners agree that AI misuse needs stronger regulation (95%) and better protection (90%). Until then, U.S. business owners are looking at AI to improve their business operations, with nearly half (46%) planning to increase their investment in AI this year. 

Investing in a stronger supply chain

Supply chain disruptions are nothing new, but they are becoming more frequent and can be very disruptive to businesses. In anticipation of supply chain disruptions, U.S. business owners are investing in supply chain technologies like artificial intelligence and machine learning (40%), supply chain automation (37%), and cloud computing (37%). Plus, three in four U.S. business owners (75%) already have contingency suppliers in place to manage potential supply chain disruptions. This comes after last year's survey revealed that 68% of U.S. business owners expressed strong concern about supply chain disruptions affecting their businesses.

"Advanced mitigation strategies are no longer optional—they're essential to managing the growing complexity and unpredictability of today's global risks," said J. Patrick Gallagher, Jr., Chairman and CEO. "Supply chain disruptions can happen anytime, anywhere, and can cripple operations without proactive planning and risk modeling. By investing in resilience now, businesses can reduce downtime, protect their bottom line, and ensure long-term continuity in the face of uncertainty."

Going beyond policies and coverage to battle storms

Aside from supply chain disruptions, U.S. business owners are also worried about severe weather impacting their businesses and are considering steps to fortify their properties beyond insurance. More than half (57%) have considered relocating their business or investing in a more resilient facility to mitigate against extreme weather. For those considering relocation, 44% would move to another location within the same state, 44% would move to a different state, and 11% would move to a different region altogether.

Flooding is one of the biggest weather threats that U.S. business owners view in the coming year (35%) as either impacting their business directly or affecting one of their suppliers; yet only 30% of U.S. business owners have flood insurance. The majority of those with flood insurance, though, have made at least one claim under those policies (71%) and over a quarter (27%) have made multiple claims. Among those who don't have flood insurance, eight in 10 (80%) are likely to purchase that coverage within the next year.

After filing a weather-related claim, U.S. business owners have taken precautions to help protect their properties against damaging weather conditions, such as floods (40%), fires (39%), wind (37%), hurricanes (32%) and hail (31%).

"Business owners know from experience that they're up against unprecedented risks, and cannot face them alone," Gallagher said. "Working with the right partner to identify and mitigate these risks will help them see the most success and proactive resilience planning, such as infrastructure upgrades, to truly safeguard their operations."

To read more about the survey, Click here.