US Business Owners are Taking Extra Precautions to Safeguard Their Businesses, According to Gallagher Study

Rhea-AI Summary

Gallagher's recent survey of 1,000 U.S. business owners reveals heightened concerns about external threats, with 72% worried about cyber-attacks (up from 69% in 2024), 69% concerned about supply chain disruptions, and 69% about severe weather. Nearly 87% of insured businesses filed claims in 2024, with 73% of claims exceeding $25,000. The study shows 93% of owners are concerned about AI's impact (up from 85%), with 46% planning to increase AI investments. To combat supply chain issues, 75% have contingency suppliers, while 40% are investing in AI and machine learning solutions. Regarding weather threats, 57% considered relocating their business, and though 35% view flooding as a major threat, only 30% have flood insurance. The survey, conducted March-April 2025, demonstrates businesses are actively implementing various protective measures across multiple risk areas.

Positive

• 87% insurance claim rate indicates businesses are actively utilizing their coverage
• 75% of businesses have contingency suppliers in place showing strong risk management
• 46% of businesses planning to increase AI investment for operational improvements
• 95% of business owners support stronger AI regulation, showing awareness of emerging risks

Negative

• 72% of businesses concerned about cyber-attacks, up from 69% in 2024
• Only 30% of businesses have flood insurance despite 35% viewing it as a major threat
• 73% of insurance claims were $25,000 or more, indicating significant financial impacts
• Supply chain disruptions remain a major concern for 69% of businesses

ROLLING MEADOWS, Ill., June 3, 2025 /PRNewswire/ -- 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.

Study Methodology
The survey was conducted between March 21 – April 2, 2025, by Wakefield Research among 1,000 U.S. 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 (NYSE: AJG) 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 56,000 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 

Media Contact
Katie O'Keefe, Prosek Partners
kokeefe@prosek.com 

Jen Marshall, Gallagher
jen_marshall@ajg.com

 

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SOURCE Gallagher

FAQ

What percentage of US business owners made insurance claims in 2024 according to Gallagher (AJG)?

According to the Gallagher survey, nearly 87% of U.S. business owners with insurance coverage made a claim in 2024.

How many US business owners are concerned about AI impacts according to the Gallagher study?

93% of U.S. business owners are at least somewhat worried that AI will affect their business over the next 12 months, up from 85% last year.

What percentage of businesses are investing in AI and machine learning for supply chain management?

40% of U.S. business owners are investing in supply chain technologies like artificial intelligence and machine learning.

What percentage of US businesses have flood insurance according to Gallagher's survey?

Only 30% of U.S. business owners have flood insurance, despite 35% viewing flooding as one of the biggest weather threats.

How many business owners are considering relocating due to severe weather concerns?

57% of business owners have considered relocating their business or investing in a more resilient facility to mitigate against extreme weather.