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Small business owners use AI insurance guidance as much as agents
In a survey of 501 US owners, 36% used AI tools to explore coverage, and 73% said they have no insurance or less coverage than they need.
More than a third of US small business owners have used an AI chatbot or search tool to research business insurance options, nearly matching the share who consulted a human agent, according to new research from ERGO NEXT Insurance, a digital-first insurer formerly known as NEXT Insurance.
The survey, which polled 501 new and established owners, found 36% used AI tools to explore coverage options versus 31% who consulted an agent. Among those using AI for insurance guidance, 94% said they trust the information they received, and 31% said they trust AI tools more than traditional sources entirely, while 63% said they trust both about equally.
ERGO NEXT also found that risk awareness is rising without sharply reducing confidence. Thirty-three percent of respondents said they worry about their business closing at least once a week, yet half remained confident they will still be operating five years from now.
The company reported a coverage gap alongside the increased reliance on AI, with 73% of small businesses carrying no insurance or less coverage than they need, and only 37% of those with coverage strongly agreeing they regularly review and update it as they grow. ERGO NEXT said economic downturn and inflation were the top concern at 46%, followed by cyberattacks and data breaches at 27%, and that 80% of new owners expect business risks to increase over the next one to two years, compared with 53% of established owners.