Canadians 'surprisingly willing' to sue small businesses, survey shows

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NEWS RELEASE
ZENSURANCE.COM
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TORONTO – A new national survey commissioned by Zensurance.com, Canada's leading source for small business insurance has uncovered that in the post-Covid, current cost-of-living crunch, Canadians are surprisingly willing to sue small businesses.

Key Findings of the Survey

1) Bad news for Canadian small businesses:
Presented with multiple options and the ability to ‘pick any that apply,’ 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 that they would sue for, including:

14.86%	Auto accident with a business vehicle where they suffer an injury
14.67%	If a product they bought from a company was defective and caused an injury or damage to their property
13.68%	If a small business or contractor made a mistake that damaged their property
13.07%	A slip and fall accident where they suffer an injury
10.70%	If a health and wellness practitioner’s advice or treatment caused them pain or money
9.40%	If they suffered food poisoning or an allergic reaction from the food they bought from a business
8.66%	If a spa or beauty salon practitioner’s advice or treatment caused them pain or money
7.76%	If a small business suffered a cyber-attack and their confidential info was stolen
7.20%	If a piece of advice a small business or contractor provided them was wrong and cost them money

A combined majority of Canadians (86.9 per cent) think most other Canadians would sue a small business (57.8 per cent) or ‘maybe’ sue (29.1 per cent) ‘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 10 Canadian small business owners had to deal with a legal dispute, representing a 230 per cent increase from 2015,” says Danish Yusuf, Founder and CEO of Zensurance.com. “Small business owners are living in an incredibly tough economic environment where money is tight. Our survey shows Canadians are far more litigious than only five years ago.”

2) Signs of the times:
A combined total of 83.2 per cent think Canadians are more likely (55.2 per cent) or ‘may be’ more likely (28 per cent) to sue a business than five years ago.

A combined 81 per cent believe that Canadians who are financially struggling are more likely (54.4 per cent) or ‘maybe’ more likely (26.6 per cent) to sue a small business for a slip and fall accident.

3) American scheme?
66.9 per cent still believe that Canadians are LESS likely to sue a small business than Americans are.

A combined 96.4 per cent of Canadians think it is very important (79.7 per cent) or somewhat important (16.7 per cent) for small businesses to have insurance coverage to protect themselves against potential legal claims and liabilities, suggesting that they believe small businesses would be sued.

“The costs of defending your business in a lawsuit can be devastating,” Yusuf added. “A comprehensive commercial insurance policy can help business owners and self-employed professionals cover the cost of legal expenses if facing allegations of wrongdoing or a lawsuit.”

4) Out of the office:
A combined 95.9 per cent of Canadians think that Canadians steal from their employers. 41.3 per cent say some, 13.4 per cent say many, 17.2 per cent say a significant number. 24 per cent say ‘more than most Canadians think.’

56.2 per cent of Canadians think that more Canadians are likely to steal from their employers because of the state of the economy and 27.4 per cent think they may be more likely to do so.

5) Most predatory provinces:
Asked, ‘In which province do they think people are most likely to sue small businesses?’ over half of Canadians (51.20 per cent) said Ontario, distantly followed by Quebec (15.5 per cent), Alberta (11 per cent), and B.C. (10.3 per cent). P.E.I. (1.9 per cent), Saskatchewan (1.6 per cent), and New Brunswick (1.5 per cent) were cited as provinces where it’s the least likely people would sue small businesses.

6) Do the (wrong) thing:
When asked if they’ve ever chosen not to pursue legal action against a small business out of concern for a business owner’s financial stability, 69.8 per cent say ‘no.’ This finding indicates business owners cannot rely on apologies or offers of discounts to appease customers who feel they were wronged in some way.

More details on this survey can be found here.