Survey reveals a surge in Canadians willing to sue small businesses amid economic strains
A national survey conducted by Zensurance.com has revealed a surprising willingness among Canadians to sue small businesses amid the current post-Covid cost-of-living crisis.
The study uncovers that a significant portion of Canadians would consider legal action against small businesses for various grievances, provided they wouldn't need to pay for a lawyer unless they won the case.
The survey presented participants with multiple scenarios, allowing them to select all applicable reasons for which they might sue a small business.
The reasons ranged from auto accidents involving a business vehicle (14.86 percent) to defective products causing injury or damage (14.67 percent), and mistakes by a business or contractor leading to property damage (13.68 percent).
Other notable reasons included slip and fall accidents (13.07 percent), adverse effects from health and wellness advice or treatments (10.70 percent), food poisoning or allergic reactions (9.40 percent), and cybersecurity breaches leading to the theft of confidential information (7.76 percent).
An overwhelming majority of Canadians (86.9 percent) believe that their compatriots would sue or consider suing small businesses under these conditions.
This sentiment is underscored by the fact that, as of 2023, 70 percent of Canadian small business owners have faced a legal dispute, marking a 230 percent increase from 2015.
Danish Yusuf, founder and CEO of Zensurance.com, comments on the heightened litigious atmosphere, emphasizing the economic challenges small business owners face and the increased propensity for Canadians to sue compared to five years ago.
Further findings from the survey indicate a broad consensus among Canadians on the importance of small businesses having insurance coverage to safeguard against potential legal claims, with 96.4 percent deeming it very or somewhat important.
This stance reflects an acknowledgment of the devastating costs that legal defenses can impose on businesses.
The survey also sheds light on workplace theft, with 95.9 percent of respondents believing that some degree of stealing occurs among Canadian employees.
This perception is exacerbated by economic conditions, with a significant number of Canadians (56.2 percent) attributing a higher likelihood of theft to the current state of the economy.
Regarding regional perspectives, over half of the survey participants (51.20 percent) view Ontario as the province where people are most likely to sue small businesses, with Quebec, Alberta, and British Columbia also noted as regions with higher propensities for such legal actions.
Conversely, P.E.I., Saskatchewan, and New Brunswick were seen as the least likely places for such lawsuits.
The study also touches on the reluctance of individuals to pursue legal action against small businesses due to concerns for the owners' financial stability, with 69.8 percent stating they have not held back from legal action for this reason.
This finding suggests that small business owners cannot solely rely on apologies or discounts to resolve customer grievances.
