Gallagher Study Finds Business Owners Focused on Preparing for the Unforeseeable

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Jun 12, 2024, 09:00 ET

ROLLING MEADOWS, Ill., June 12, 2024 /PRNewswire/ -- Gallagher, a global insurance brokerage, risk management and consulting services company, recently conducted a survey of 1,000 American business owners, revealing 80% of business owners are worried their business insurance will not cover a specific event or loss. Business owners are most worried about:

Extreme Weather Conditions: 91% worry about the threat of extreme weather conditions or natural disasters and the effect 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 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.

Growth: Half of the businesses (50%) 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 their businesses grow.
Small businesses with between 1-50 employees (52%) are less interested in AI than their larger counterparts:
- 51-100 employees (87%)
- 101-500 employees (87%)
- 501-1,000 employees (93%)
- + 1,000 employees (89%)
Risk: 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%).

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 nearly all business owners (96%) to put risk management strategies or practices in place for their businesses.

And 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."

Media contacts
Gallagher: Jen Marshall; [email protected]; Tel: +1 847 476 2734
Prosek Partners on behalf of Gallagher: Jordan Specht; Email: [email protected]; Tel: +1 915 815 8335

Study Methodology
The survey was conducted between March 4 – 15, 2024, by Wakefield Research among 1,000 U.S. business owners using an email invitation and an online survey.

Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results. For the interviews conducted in this particular study, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 3.1 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample.

About Gallagher
Gallagher is one of the world's largest insurance brokerage, risk management and consulting firms. As a community insurance broker and trusted local consultant, we help people and businesses move forward with confidence. With more than 52,000 people working around the globe, we are connected to the places where we do business and to every community we call home. Managing risk with customized solutions and a full spectrum of services, helping you foster a thriving workforce, and always holding ourselves to the highest standards of ethics to help you face every challenge - that is The Gallagher Way. https://ajg.com

SOURCE Gallagher