US Business Owners Ramp up Their Insurance Coverage as AI, Election Emerged as Significant Risks to Businesses

By Jace Dela Cruz

Jun 13, 2024 03:44 AM EDT

A new survey shows that many US business owners are ramping up their insurance coverage as they navigate the challenges of an AI boom and the upcoming presidential elections.

Job Office Team

(Photo : Ronald Carreño from Pixabay)

Business Owners Seek to Increase Insurance Coverage Amid AI, Election Fears

According to a survey by insurance brokerage Gallagher, 80% of business owners are concerned their current insurance policies may not cover specific losses associated with these risks, Reuters reported. 

As companies rush to integrate AI, particularly generative AI, into their operations, the technology is rapidly transforming various sectors, from tech to finance. Despite its potential, adopting AI brings concerns about data privacy, regulatory compliance, and job redundancies.

Simultaneously, the looming presidential election, featuring a contest between former President Donald Trump and current President Joe Biden, added another layer of uncertainty. According to the survey's findings, businesses could face cyber interference and shifts in public policy that might impact corporate operations.

READ NEXT: Joe Biden Administration Touts Over 17 Million New Business Applications as More Americans Dream of Being Their Own Boss 

AI Investments

The survey, which included 1,000 respondents, revealed that 81% plan to maintain or increase their AI investments in 2024. However, the need for enhanced insurance coverage is underscored by fears of cyber attacks and extreme weather events.

Gallagher emphasized the importance of businesses understanding regulatory risks, including potential liabilities related to copyright infringement, data bias, and intellectual property, especially in the ever-evolving age of AI. 

READ MORE: Despite AI Hype, New Data Shows Only Few US Companies Are Actually Using It 

© 2024 VCPOST, All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics