#United States #Supply Chain #Rolling Meadows #Gallagher #Cyber-attacks

Growing Concerns Among U.S. Business Owners

In a recent survey conducted by Gallagher, a leading insurance brokerage and risk management firm, the rising concern among U.S. business owners about various external risks was prominently highlighted. The comprehensive survey involved 1,000 business owners and revealed a significant level of anxiety about events that could impact their operations over the next year, including supply chain disruptions (69%), severe weather conditions (69%), and cyber-attacks (72%). This growing apprehension has consequently driven these business owners to adopt a range of proactive strategies to safeguard their enterprises.

Cyber-Attacks: A Rising Threat

Among the pressing concerns is the alarming growth in anxiety surrounding cyber-attacks, with 72% of entrepreneurs expressing strong fears that such incidents may disrupt their businesses over the coming 12 months. This marks an increase from the previous year’s figure of 69%. In response to this threat, a notable portion of business owners, specifically 36%, is considering acquiring or enhancing their insurance coverage for cyber-related incidents. Despite a collective consensus on the necessity for stronger regulation and protection against artificial intelligence misuse (95% and 90% respectively), nearly half of these entrepreneurs still plan to increase their investments in AI this year, indicating a dual focus on enhancing operational efficiency while managing potential risks.

Shields Against Supply Chain Disruption

The issue of supply chain disruptions, magnified by recent global events, remains a major concern, with 75% of business owners implementing contingency plans. Many are investing in advanced supply chain technologies, including artificial intelligence (40%), supply chain automation (37%), and cloud computing (37%). Historical data indicated that 68% of business owners were already concerned about supply chain stability; thus, the recent trends emphasize a proactive approach towards technology adoption as a means of achieving long-term resilience.

Preparing for Severe Weather Challenges

Beyond economic and technological concerns, U.S. business owners are increasingly aware of the threat posed by severe weather phenomena. In fact, over half—57%—of the surveyed individuals are considering relocating or investing in more robust facilities to combat extreme weather. Notably, flooding has emerged as a key risk, with 35% identifying it as a potential direct threat to their businesses. Yet, only 30% currently hold flood insurance policies. Alarmingly, a significant number—71%—of those insured have lodged at least one claim under their flood policies.

As business owners navigate this intricate landscape of risks, they need to take forward-thinking steps to protect their assets. J. Patrick Gallagher, Jr., Chairman and CEO, remarked, "Advanced mitigation strategies are no longer optional; they're essential to managing the growing complexity and unpredictability of today's global risks. By investing in resilience now, businesses can endure prolonged disruptions and secure their operational continuity."

Conclusion: The Need for Comprehensive Risk Strategies

With a staggering 87% of business owners reporting insurance claims in 2024, and many experiencing substantial out-of-pocket expenses, the importance of aligning insurance policies with business needs has never been greater. Moving forward, collaboration with knowledgeable insurance and risk management partners will likely continue to be pivotal for U.S. business owners as they seek to weather the storms ahead—both literally and figuratively. The current era calls for a multifaceted approach to risk management, one that encompasses all levels of operational threats while fostering agile responses to emerging challenges.

For full survey details and methodologies, as well as insights about Gallagher's services, visit Gallagher's website.