Legal problems for American small businesses are on the increase.
Legal Perspectives
Legal issues are getting worse for American small businesses
Are large companies ready?
Formal Perspectives
By.
Mika Pangilinan
18 April 2023
Show.
According to a recent study by ARAG Legal Solutions Inc., seven out of ten small businesses in Canada have experienced at least one genuine problem over the past three decades. This indicates that legal duty is growing in importance for these companies.
In contrast to a 2015 study that found that only three out of ten small business owners have dealt with genuine matters, this boost is 230 %.
According to Jeff Kless, vice president of ARAGs for marketing and strategic initiatives, we could do better as an industry to make sure our small-business clients are aware of their choices and, as reasonable risk managers, ensure protection against genuine danger is included in their insurance portfolios.
Kless said his company sought to determine how the legal chances status has changed since the 2015 study was conducted by surveying about 1, 000 small business owners across Canada.
In the most recent ARAG study, 70 % of small business owners said they had spent a lot of time resolving legal issues, while more than half said the legal battles they faced had had little to no financial impact on their companies. Additionally, 73 % of respondents claimed that handling these legal disputes had caused them between moderate and significant mental stress on a personal level.
Three out of ten small business owners also claimed to have known another master who had been adversely affected by a genuine difference or had lost their company after it.
The statement went on to describe how small business owners worry about the potential negative effects of legal issues on their businesses' status and productivity, as well as future programs for growth and expansion, in addition to the financial and mental stress brought on by legal problems.
In light of these worries, the ARAG understand emphasized how far the healthcare sector has come in terms of improving client communication. According to the report, seven out of ten small business owners claimed their broker or insurer had previously discussed the psychological effects of such issues, while six in 10 claimed they had not spoken to them about the financial repercussions of legal disputes.
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