Risk & Business Magazine CMW Insurance Fall 2015 | Page 31
Small Businesses and Legal Disputes
Are Too Many Businesses Being Distracted By Disputes With Their Customers?
BY: JEFF KLESS, MARKETING MANAGER, DAS CANADA
I
n Canada, 3 out of 10 small business
owners dealt with the stress and
disruption of handling a legal dispute
during the past three years. In an
attempt to resolve these disputes, both
parties were required to hire lawyers,
having to pay up to $400 an hour. The top
three sources of legal conflict are:
1. Collecting money owed by customers
2. Contract disputes with customers
3. Contract disputes with suppliers
Considering there are millions of selfemployed and small-medium business
owners, that’s a lot of unnecessary
distraction and time away from running
their business - especially when a solution
is available to both empower and protect
them in case of unforeseen legal disputes.
In order to better understand small
business owners’ experiences and
attitudes towards legal disputes, DAS
Canada engaged Ipsos to conduct an
online panel survey of over 1,000 business
owners from across Canada. Here are
some of the key findings:
•
73% believe a legal dispute would
have a tangible financial impact on
their business, but only 27% have set
aside budget to protect their business
from the potential costs involved
with legal disputes
•
Only 12% of business owners
feel they have sufficient
insurance coverage to cover any
type of unforeseen legal expenses
•
1 out of 10 small business owners
know another owner who lost their
business due to a legal dispute
“Our research findings suggest that
while business owners appreciate the
significant impact a legal dispute could
have on them, many unfortunately are
either not being proactive or feel fully
protected” says Barbara Haynes, CEO of
DAS Canada. “That’s where legal expense
insurance can help. It fills the gap in their
insurance portfolio and gives business
owners peace of mind, so they can focus
on what matters most – growing their
business.”
Contact your insurance broker to find
out how a DAS Legal Expense Insurance
policy completes your commercial
insurance portfolio.
DAS Canada white paper, Small Business
Owners and the Canadian Legal System,
das.ca/accesstojustice
Jeff Kless is the Marketing Manager with
DAS Canada
RISK & BUSINESS MAG i%9Q4