Among business owners, 73% made a claim for $25,000 or more last year. (Credit: Chaay_tee/Adobe Stock)
Business owners are concerned about the effects of tariffs, supply chain disruptions, AI, natural disasters — and whether their insurance will cover any of it, according to a new Gallagher study.
The vast majority of business owners (90%) said they’re worried more than ever about their insurance not covering a specific event or loss. Among respondents, 87% made an insurance claim for their business in 2024, and many of those claims weren’t small: 73% were for $25,000 or more.
Business owners cited supply chain disruptions (93%) as a major concern over the next 12 months, and 90% said they’re concerned about the impact of tariffs. Most owners (73%) said they’ve dealt with supply chain disruptions in the past that have impacted their business, and many (75%) have contingency suppliers in place in case of disruptions.
Product recalls are a concern among 89% of owners, with 85% saying they’ve been affected by a recall in the past.
Natural disasters are also top of mind. Most business owners (91%) said they’re concerned a natural disaster could adversely affect their business. Many (71%) have made a business flood insurance claim in the past.
Owners have taken steps to protect their properties, including flood-proofing (40%), fire-proofing (39%), wind-proofing (37%), hurricane-proofing (32%) and hail-proofing (31%). More than half (57%) have considered relocating their business or investing in a more resilient facility to help mitigate their natural disaster risk.
Many business owners (72%) said they’re extremely or very concerned about cyber attacks impacting their business this year, and 36% said they would like to acquire or expand their cyber coverage. Artificial intelligence is also concerning many business owners (93%), and nearly all owners said AI misuse needs stronger regulation (95%) and better protection (90%).
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