A study by global insurance brokerage Gallagher revealed on Tuesday that an overwhelming number of business owners in the United States are looking to expand their insurance coverage amid risks ranging from climate change to cyber attacks.
The study showed that around 83% of business owners said they were either actively looking for or are very likely to seek additional insurance policies. According to the study, risks arising from climate change and natural disasters over the next 12 months are a major concern for 68% of business owners.
A July report by Gallagher Re, the reinsurance broker division of Gallagher, revealed that Severe storms and wildfires across parts of North America brought cities to a near standstill earlier this year, with U.S. severe convective storm (SCS) insured losses exceeding $34 billion in the first six months of 2023.
“The devastation caused by natural disasters has heightened urgency for adequate protection,” Reuters quoted CEO Patrick Gallagher as saying, adding that there is ongoing demand for insurance coverage to secure properties, homes and businesses from potential damages and losses linked to these events.
He further added that cyber insurance is also in focus, as businesses’ exposure to potential attacks increases, with the growing reliance on technology and digital infrastructure. 74% of the respondents in the survey expressed extreme or very high concern about the impact of cyber attacks on their businesses.
Earlier this year, hackers took advantage of a previously undiscovered flaw in a popular file transfer program, MOVEit Transfer, to steal data from a wide swathe of organizations including accounting giants EY and PwC, energy firm Shell (SHEL.L) and major U.S. pension fund Calpers.