US business owners seek more insurance protection amid mounting risks: study

AN OVERWHELMING number of business owners in the United States are looking to expand their insurance coverage amid risks ranging from climate change to cyberattacks, a study by global insurance brokerage Gallagher showed on Tuesday (Aug 8).

Around 83 per cent of business owners said they were either actively looking for, or were very likely to seek additional insurance policies.

Over the next 12 months, risks arising from climate change and natural disasters are a major concern for 68 per cent of business owners, the study found.

Severe storms and wildfires across parts of North America brought cities to a near standstill earlier this year, with US severe convective storm insured losses exceeding US$34 billion in the first six months of 2023, a July report by Gallagher Re, the reinsurance broker division of Gallagher, revealed.

“The devastation caused by natural disasters has heightened urgency for adequate protection,” chief executive Patrick Gallagher told Reuters, 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 added that cyber insurance is also in focus, as businesses’ exposure to potential attacks increases, with the growing reliance on technology and digital infrastructure.

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An overwhelming 74 per cent of the respondents in the survey expressed extreme or very high concern about the impact of cyberattacks 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 organisations, including accounting giants EY and PwC, energy firm Shell and major US pension fund Calpers. REUTERS