⚖️ ‘UnCanadian’ to sue a small business, say a third of

A new national survey commissioned by Zensurance.com, Canada’s leading source for small business insurance, has found that in today’s post-Covid cost of living crisis, Canadians are surprisingly willing to sue small businesses.

Key findings from the survey

1) Bad news for Canadian small businesses:

The Canadians were presented with multiple options and the opportunity to ‘choose all options that applied’. Canadians were asked “what they would sue a small business for if they didn’t have to pay a lawyer unless they won.” A majority of respondents found something they would sue for, including:

• 14.86% – Car accident with a commercial vehicle in which they are injured
• 14.67% – If a product they purchased from a company was defective and caused injury or damage to their property
13.68% – When a small business or contractor has made a mistake that damaged their property
13.07% – A slip and fall accident that injured them
10.70% – If the advice or treatment of a health and wellness doctor caused him pain or money
9.40% – If they suffered food poisoning or an allergic reaction from the food they purchased from a company
8.66% – If the advice or treatment from a spa or beauty salon caused him pain or money
7.76% – If a small business suffered a cyber attack and confidential information was stolen
7.20% – If a small business or contractor gave advice, it was wrong and cost them money

A combined majority of Canadians (86.9%) think most other Canadians would sue a small business (57.8%) or ‘might’ sue (29.1%)’ if they didn’t have to pay unless they won.”

“Canadian small businesses need to be aware of the real risks they face – as of 2023, seven out of ten Canadian small business owners faced a legal dispute, representing a 230% increase from 2015,” says Danish Yusuf, founder and CEO of Zensurance.com. “Small business owners are living in an incredibly difficult economic environment where funds are tight. Our research shows that Canadians are much more litigious than just five years ago.”

2) Signs of the times:

Overall, 83.2% think Canadians are more likely (55.2%) or ‘possibly’ more likely (28%) to sue a company than they were five years ago.

A combined 81% believe that Canadians who are struggling financially are more likely (54.4%) or “maybe” more likely (26.6%) to sue a small business for a slip-and-fall accident.

3) American plan?

66.9% still believe Canadians are LESS likely to sue a small business than Americans.

A combined 96.4% of Canadians say it is very important (79.7%) or somewhat important (16.7%) that small businesses have insurance coverage to protect themselves against potential legal claims and liabilities, indicating that they think small businesses will be taken to court.

“The cost of defending your business in a lawsuit can be devastating,” Yusuf added. “A comprehensive commercial insurance policy can help business owners and self-employed individuals cover the costs of legal fees if they are faced with allegations of misconduct or a lawsuit.”

4) Outside the office:

Overall, 95.9% of Canadians think Canadians steal from their employers. 41.3% say some, 13.4% say a lot, 17.2% say a significant number. 24% say ‘more than most Canadians think.’

56.2% of Canadians think more Canadians are likely to steal from their employers due to the state of the economy, and 27.4% think they are more likely to do so.

5) Most Predatory Provinces:

Asked: “Which county do they think people are most likely to sue small businesses in?” more than half of Canadians (51.20%) said Ontario, followed distantly by Quebec (15.5%), Alberta (11%) and BC (10.3%). PEI (1.9%), Saskatchewan (1.6%) and New Brunswick (1.5%) were named as provinces where people are least likely to sue small businesses.

6) Do the (wrong) thing:

When asked if they have ever chosen not to take legal action against a small business out of concern for the business owner’s financial stability, 69.8% say “no.” This finding indicates that business owners cannot rely on apologies or offers of discounts to appease customers who feel they have been wronged in some way.

SOURCE: Zensurance.com