Executives & Insurance — Not Enough Coverage

Sentry Insurance did its annual survey of executives and their company’s insurance coverage and checked in with 1,000 business owners and C-suite leaders. This year close to 75% of owners and executives are concerned they don’t have enough insurance and 67% are more stressed about insurance at the beginning of 2025 than they were at the beginning of 2024.

The biggest stressor is economic uncertainty. It worries 47% of executives. Other problems stressing executives and business owners are supply-chain issues, the cost of health care for employees, the shortage of labor and inflation.

Surprisingly, 97% said they have put off up equipment updates for their businesses, cyber security systems and technology. When it comes to cyber security issues, 33% said it is their top concern.

High costs and a lack of resources are the top reasons for not doing critical updates.

When it comes to workers, 38% say they’re going to need more hours with fewer breaks in 2025. They’ll also be asked to do work-related things that are outside their scope of work or skills.

Close to 50% of the surveyed owners and executives are worried about the impact of a severe event of some kind that will cause them to go out of business, or to pay employees if they stay in business.

Weather is a big concern, too, and 90% said their businesses were hit hard by weather events in the last five years. When it comes to serious events and payroll, 76% of the owners and executives worry their insurance won’t cover six months of payroll after a catastrophic weather event.

Another problem? Litigation and multimillion dollar verdicts from lawsuits are a disturbing possibility to 72% of those surveyed. Over half said they’re seriously thinking about pumping up their liability insurance to cover those costs.

Source link: Business Insurance — https://bit.ly/4aTcany