The 2025 Business Owners Survey

By Gallagher Small Business | Tuesday, August 12, 2025

Gallagher's 2025 Business Owners survey reached out to business owners across industries in the United States to get a finger on the pulse of what they view as risk, how they are prepared to mitigate that risk and how they plan to adapt in the event they are affected by that risk.

The data below represents responses from those who were surveyed, with reported annual company revenue of less than $50 million.

The survey responses show small business owners have growing concerns in 4 key areas:

Insurance Claims: Small business owners remain concerned of issues where insurance will not cover for specific losses.
Weather/climate: Climate change continues to impact businesses of all sizes around the globe.
Artificial intelligence & Small Business: The continued evolution of AI technology is an increasing worry for small business owners.
Supply chain: Continued supply chain interruptions in 2023 and 2024 have led many small businesses to put contingency plans in place.

Insurance claims

A majority, 86%, of small business owners reported having to make an insurance claim in 2024. Of those who make a business-related insurance claim for their business in 2024, small business owners reported they made the following claims:

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Of those who reported making a business-related insurance claim, 57% were $25,000 or more. 17% were $50,000 or more.

As small business owners make their claims, 89% remain concerned that insurance will not cover a specific loss or event.

Of these ongoing concerns, weather-related issues remain at the forefront of business owners' minds. Business owners reported that of available business-related insurance policies, owners would like to expand their insurance coverage of, or get new insurance coverage for the following:

Weather-related issues

The extreme weather conditions and natural disasters small business owners report as being the biggest threat to their business (either directly or to one of their suppliers in the next year) include:

74% of small business owners who currently have flood insurance have made a claim under their business flood insurance policy. 78% of small business owners are likely to purchase flood insurance for their business in the next 12 months.

After filing a weather-related claim for their small business, 80% of small owners took action to fortify their business:

51% of small business owners report planning to relocate or they have relocated their business due to weather-related issues.

Artificial Intelligence and Small Business

As AI continues to revolutionize the way businesses operate, small business owners were asked about their investments in AI. 96% of small business owners said they are investing in or plan to invest in AI in 2025; 82% said they plan to increase or maintain investments.

While there are many uses for AI in business, small business owners report they currently, or plan to use AI in:

Despite use, 93% of small business owners feel strongly that AI misuse needs stronger regulation and 87% agree that it needs better protection.

Supply Chain

73% of small business owners were impacted by supply chain disruptions in 2023 or 2024.

These interruptions have resulted in small business owners putting plans in place to protect their business. 71% reported having contingency suppliers in place in the event of another disruption.

Small business owners also report they are planning to invest in supply chain technologies to improve and protect their businesses. Only 4% of respondents indicated they were not making this investment.

"Small business owners are no strangers to risk, but the landscape is evolving faster than ever. From extreme weather to cyber threats, the key to resilience is preparation. The smartest business owners aren't just reacting to risk — they're anticipating it. That means working with advisors who understand your industry, tailoring coverage to your exposures, and investing in tools that help you adapt quickly. Risk mitigation isn't just about insurance, it's about building confidence in your ability to keep moving forward." — Jen Tadin, President, Gallagher Small Business & Personal Insurance

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The information contained herein is offered as insurance Industry insight and provided as an overview of current market risks and available coverages and is intended for discussion purposes only. This publication is not intended to offer legal advice or client specific risk management advice. Any description of insurance coverages is not meant to interpret specific coverages that your company may already have in place or that may be generally available. General insurance descriptions contained herein do not include complete Insurance policy definitions, terms and/or conditions, and should not be relied on for coverage interpretation. Actual insurance policies must always be consulted for full coverage details and analysis. Insurance brokerage and related services provided by Arthur J. Gallagher Risk Management Services, LLC (License Nos. 100292093 and/or 0D69293).