US business owners are moving beyond reactive risk management and embedding risk into how they operate, invest and grow, a recent survey by global insurance broker Gallagher revealed.
Gallagher’s fourth annual Business Owners Survey, which included the participation of 1,000 business owners, highlights a broader shift toward more proactive risk practices, driven by rising pressure across AI, supply chain and extreme weather risks.
The persistent psychological burden of entrepreneurship is underscored by the fact that 94% of business owners fear their insurance might fall short during a specific loss or event, further justifying the shift toward integrated risk strategies.
According to the survey, artificial intelligence (AI) is seen as both a growth driver and an emerging risk for their business, with 89% of business owners saying they are at least somewhat concerned about AI’s impact on their business.
Respondents agree that stronger safeguards related to AI are needed, with 95% calling for greater regulation and 94% for improved protections against misuse.
While businesses recognise the dangers external AI can pose to their business, 47% plan to increase investment in how they use AI in their business this year.
Organisations are actively incorporating AI into their defensive frameworks; specifically, 38% of those investing in the technology use it for analytical risk assessment, and 36% employ it to mitigate risks within their insurance and management schemes.
“Cyber risks remain a consistent worry for leaders, and the risk landscape has transitioned from being an emerging threat to a core operational vulnerability. 68% stated that they are worried that cyber attacks will affect their business and 44% expressed a desire to acquire or expand insurance coverage for cyber attacks,” the survey stated.
Leaders continue to fee; pressured by relentless trade uncertainty and supply chain volatility that have now become a standard operating challenge rather than an episodic risk
With 63% of business owners expressing concern over potential supply chain disruptions in 2026, 61% have already implemented contingency suppliers. This trend reflects a wider move toward prioritising operational redundancy and robust continuity strategies.
“What we’re seeing with business owners is a meaningful shift toward treating risk management as a business consideration that informs operations, investments and growth,” said J. Patrick Gallagher, Jr., Chairman and CEO. “This mindset can help businesses build resilience in an increasingly complex risk environment.”
The survey also revealed that while business owners remain concerned about the effects of severe weather events, coverage gaps persist.
Flooding is among the top weather-related threats to their business, as highlighted by 53% of the respondents. This includes both direct impacts and disruptions affecting suppliers, up from 35% in 2025.
However, only 30% said they have flood insurance, consistent with last year’s results. Business owners also cited concern about severe storms that bring heavy rainfall, hail, or damaging winds (41%), earthquakes (35%) and extreme heat (30%).
To strengthen their organisations against environmental threats, 27% of proprietors have already upgraded their facilities using weather-resistant materials or plan to do so following a weather-related business claim.
“Despite rising exposure, many businesses remain underinsured, widening the gap between risk and protection,” he added. “Working with the right insurance and risk management partners to identify and mitigate exposures can help businesses better protect operations and strengthen resilience.”
