US business owners are shifting from reactive risk management toward a more integrated approach, embedding risk into operations, investment and growth strategy but significant protection gaps remain, according to Gallagher's fourth annual Business Owners Survey.
The survey of 1,000 business owners found that 94% are worried their insurance may not cover a specific event or loss.
The concern is well-founded. A 2025 Hiscox report found that 77% of small businesses in the US are underinsured, a two-percentage-point increase from 2023, leaving them financially and legally exposed to lawsuits and other business threats. Three out of five small business owners reported increased revenue over the past two years, yet insurance protection has not kept pace with that growth.
"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."
Eighty-nine percent (89%) of business owners expressed at least some concern about AI's impact on their operations, with 95% calling for greater regulation and 94% for improved protections against misuse. Yet 47% plan to increase AI investment this year, and among those already deploying it, 38% are applying it to risk assessment and 36% to risk mitigation within their insurance programs.
That confidence sits uneasily alongside what is happening on the policy side. ISO exclusions for generative AI in commercial general liability policies took effect in January 2026, with some carriers already beginning to adopt the new endorsements. Those exclusions are expected to push more AI-related liability into cyber, errors and omissions, and coverage disputes.
The practical implication is pointed: clients investing heavily in AI may be doing so without realizing their CGL policy has just become significantly narrower. Companies using AI should expect closer underwriting scrutiny at renewal in 2026 and beyond, as AI risk is increasingly treated as a distinct underwriting category.
Sixty-eight percent (68%) of business owners said they are worried that cyberattacks will affect their business, while 44% expressed a desire to acquire or expand cyber coverage.
Triple-I and Munich Re's RiskScan 2026 found persistent protection gaps for cyber insurance among businesses and insurance professionals alike, even as the frequency and complexity of threats continues to rise. The gap between stated concern and actual coverage remains one of the most actionable conversations available at renewal.
Sixty-three percent (63%) of respondents are concerned that supply chain disruptions will affect their business in 2026, with 61% having established contingency suppliers.
The operational response signals a widespread recognition that trade volatility has become structural rather than episodic. What is less well understood among business owners is how limited their insurance protection is against this risk. Standard contingent business interruption policies require that a supplier's disruption result from covered physical damage to their property.
Meanwhile, trade disruptions caused by tariffs, including a supplier raising prices or stopping shipments due to retaliatory duties, fall outside the trigger. A 25% tariff on imported autos and parts introduced in 2025 has already driven up auto claim severities and disrupted insurer pricing models, illustrating how quickly trade policy shifts translate into insurance market consequences. Business owners building contingency suppliers are taking sensible operational steps, but the coverage gap that sits beneath those operations deserves equal attention.
The survey's flood findings are among its most striking for insurance professionals. Fifty-three percent (53%) of business owners identified flooding as a top weather-related threat, up sharply from 35% in 2025, yet only 30% hold flood insurance.
Texas flooding in 2025 generated estimated economic losses of between $18 billion and $22 billion, most of it uninsured. Standard commercial property policies typically exclude flood damage, a fact many business owners discover only after a loss. Private insurers have been expanding into the commercial flood space, writing approximately $750 million in commercial flood premiums in 2024 and accounting for around 27% of the total flood market by direct premiums written, up from roughly 13% a decade ago.
The growing awareness captured in the Gallagher survey, combined with persistently low penetration, represents a concrete opportunity for brokers to close one of the most clearly documented gaps in commercial lines.
Business owners also cited concern about severe storms with heavy rainfall, hail or damaging winds (41%), earthquakes (35%) and extreme heat (30%). Twenty-seven percent (27%) have rebuilt or reinforced their properties with weather-resilient materials, or intend to do so, following a weather-related claim.
"Despite rising exposure, many businesses remain underinsured, widening the gap between risk and protection. Working with the right insurance and risk management partners to identify and mitigate exposures can help businesses better protect operations and strengthen resilience," said Gallagher.
