Strategy & Business, 19 August 2026
Growth amid risk
How ERGO NEXT helps small US businesses manage risks and secure growth.
How do small businesses in the United States manage to grow in uncertain economic conditions – and what role does technology play? ERGO NEXT Insurance, the digital-first small business insurer in the US, explores these questions in its three-part “Building Through Uncertainty” research series.
Economic uncertainty, rising risks, complex decisions: this is the environment in which small businesses in the US have to find their way. The study shows how they navigate ongoing uncertainty, adjust their insurance decisions and increasingly use AI to make more informed choices about protection. It is based on a survey of 501 new and established US small business owners.
Modern small businesses are building with a much clearer understanding that uncertainty is a defining characteristic of today’s environment.
More risk – yet confidence in the future
A central finding: today’s US entrepreneurs start out with a much stronger awareness of risk than previous generations – without losing confidence in their long-term prospects.
- 33% of small business owners worry at least once a week that they might have to close.
- Still, 50% are confident they will still be operating in five years’ time.
- 80% of entrepreneurs expect business risks to increase over the next one to two years (compared with 53% of established business owners).
- Economic downturn or inflation is the top concern for 46%, followed by cyber attacks and data breaches (27%).
- 77% say they have become more proactive in identifying and managing risk as their business has matured.
- 43% wish they had understood their insurance coverage needs sooner.
For ERGO and ERGO NEXT, this is a clear signal: risk awareness is there – the real challenge is turning that awareness into protection that evolves with the business.
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.
Buying earlier – yet many remain underprotected
The study also shows that small businesses are prioritising insurance earlier, but gaps in understanding mean many still remain insufficiently protected.
- 73% of small businesses have no insurance or less cover than they need.
- Among those with insurance, only 37% strongly agree that they regularly review and update their cover as their company grows.
- Insurance is more common among newer entrepreneurs: 82% of businesses in their first year have at least some cover, compared with 67% of businesses in their second to fifth year.
- Among businesses without insurance, 50% say it is too expensive and 20% say it is too confusing.
These figures make one point clear: cost is only part of the story. Complexity and a lack of clarity can mean that even risk-aware business owners remain underinsured.
When chatbots become the first port of call
The third part of the series looks at how small businesses in the US use AI and digital tools in their insurance decisions.
- 36% of entrepreneurs have used an AI chatbot or search tool to explore business insurance options.
- 31% say they have consulted an insurance agent – so AI is already slightly ahead as a first step.
- Among entrepreneurs who have used AI for business insurance advice, 94% say they trust the information they receive.
- 31% trust AI tools more than other sources, 63% trust them about the same. Only 7% say they trust AI less than traditional sources of information.
The results point towards a collaborative model: AI-supported tools are becoming the starting point for research and orientation, while human advice remains crucial for more complex decisions.
Further information on the study can be found on the website of ERGO Next Insurance:
ERGO NEXT Insurance is the digital-first small business insurer in the United States and part of the ERGO Group. Formerly known as NEXT Insurance, the company offers simple, fully digital cover tailored to the needs of entrepreneurs and small businesses.
ERGO NEXT now supports more than 750,000 small businesses in the US with a digital-first insurance experience: business owners can purchase insurance where they already operate – for example via partners such as TikTok Shop and Amazon or through the agency network. Tailored policies can be set up online in around ten minutes, AI helps match cover to each business’s unique risk profile, and policies can be adjusted in real time.
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