ERGO NEXT Survey: 80% of New Entrepreneurs Expect Rising Risks as AI Adoption for Insurance Grows

PALO ALTO, Calif., Aug. 18, 2026 (GLOBE NEWSWIRE) -- ERGO NEXT Insurance, the digital-first small business insurer, today shares key findings from its Building Through Uncertainty research series. Based on a survey of 501 new and established U.S. small business owners, the research reveals how entrepreneurs are adapting to persistent economic uncertainty by becoming more proactive about risk, rethinking how they purchase insurance and increasingly using AI to make more informed insurance decisions.

“Modern small businesses are building with a much clearer understanding that uncertainty is a defining characteristic of today’s environment,” said Effi Fuks-Leichtag, chief product officer at ERGO NEXT Insurance. “They continue to believe in themselves and the future of their businesses, but long-term success increasingly depends on having access to technology and trusted advisors that help them understand what protection they need and how that changes as they grow.”

Today’s entrepreneurs are entering business with a greater awareness of risk than previous generations, yet remain confident in their long-term future. Despite 33% of small business owners saying they worry about closure at least once a week, half remain confident that they’ll still be operating five years from now.

Key findings include:

• 80% of new business owners expect business risks to increase over the next one to two years, compared with 53% of established business owners.
• Economic downturn or inflation ranked as entrepreneurs' top concern (46%), followed by cyber attacks and data breaches (27%).
• 77% say they've become more proactive about identifying and managing risk as their business has matured.
• 43% of entrepreneurs wish they had understood their insurance coverage needs sooner.

Entrepreneurs are prioritizing insurance earlier as they become more aware of business risk, however a lack of understanding remains a barrier and means that a significant amount are either unprotected or lack coverage altogether.

Key findings include:

• 73% of small businesses have no insurance or less coverage than they need, and of those with coverage, only 37% strongly agree that they regularly review and update their coverage as their company grows.
• Insurance is more common among newer entrepreneurs, with 82% of businesses in their first year having at least some coverage, compared with 67% of businesses operating for two to five years.
• 50% of small businesses without insurance say it’s too expensive and 20% say it’s too confusing.

Small businesses are becoming more comfortable using digital tools to navigate business decisions while relying on insurance agents for more complex insurance needs. This signals that the future AI in insurance will be collaborative, with technology supporting professional guidance.

Key findings include:

• 36% of entrepreneurs have used an AI chatbot or search tool to explore business insurance options, with 31% saying they’ve consulted an insurance agent.
• Among entrepreneurs who have used AI for business insurance advice, 94% say they trust the information they receive.
• 31% of small businesses trust AI tools more than other sources, while 63% trust them about the same. Only 7% say they trust AI less than traditional sources of information.

“Across the survey series, one theme remains consistent: entrepreneurs are becoming more aware of risk without losing confidence in their ability to grow with it,” said Philip Natoli, Chief Actuarial Officer. “The challenge is turning that awareness into protection that keeps pace with their businesses, which requires a combination of technology and human expertise to help them make more informed decisions as their risks evolve.”

ERGO NEXT Insurance helps over 750,000 small businesses navigate uncertainty through a digital-first insurance experience designed to fit the needs of entrepreneurs. Business owners can purchase tailored coverage online in about 10 minutes – with AI-powered technology helping match protection to their unique risk profiles – and manage or update policies in real time.

Entrepreneurs can also purchase coverage where they already operate through ERGO NEXT’s growing network of corporate partnerships, including TikTok Shop and Amazon, as well as through its strong agency network.