The stress and disruption of handling a legal dispute has become familiar to three in 10 small business owners in the past three years, finds a survey by legal expense insurer DAS Canada.
The top three sources of legal conflict are:
1. Collecting money owed by customers.
2. Contract disputes with customers.
3. Contract disputes with suppliers.
The survey also found:
- 73% of owners say a legal dispute would have a tangible financial impact on their business
- 27% of owners have set aside for legal disputes
- 12% of owners feel they have sufficient insurance to cover unforeseen legal expenses
- 10% of owners know another owner who lost his or her business due to a legal dispute