U.S. Business Owners Seek More Insurance Coverage as AI, Election Risks Loom

A recent survey by insurance brokerage Gallagher reveals that U.S. business owners are increasingly worried about their insurance coverage amid emerging risks from artificial intelligence (AI) and the upcoming presidential election. With 80% of respondents expressing concerns about potential losses not being covered by their current insurance policies, the survey underscores the growing unease in the business community.

The survey highlights that businesses are significantly increasing their focus on insurance coverage due to the dual threats posed by AI integration and political uncertainties.

The survey involved 1,000 U.S. business owners across various industries, all of whom are keenly aware of the changing risk landscape. The survey was conducted recently, with results published on June 20, 2024.

The findings are crucial for business owners and industry stakeholders as they navigate the complexities of modern risks. The rapid adoption of AI and the upcoming U.S. presidential election present unique challenges that require proactive risk management strategies. Businesses are particularly concerned about AI-related issues such as exposure to sensitive information, regulatory compliance, and workplace redundancies. Additionally, the potential for cyber interference during the election adds another layer of risk.

According to Gallagher’s survey, 81% of respondents plan to maintain or increase their AI investments in 2024, despite the associated risks. Furthermore, 91% worry about the impact of natural disasters on their operations, while 69% are concerned about cyberattacks.

Understanding these concerns is vital for businesses to enhance their risk mitigation strategies. Chairman and CEO J. Patrick Gallagher emphasizes the need for organizations to conduct comprehensive risk assessments focusing on compliance, privacy, and cybersecurity when incorporating AI into their operations.