According to the survey, a combined total of 83.2 per cent of respondents think Canadians are more likely or “may be” more likely to sue a business now vs. five years ago.

By Lucy Mazzucco

A recent national survey commissioned by technology company Zensurance.com revealed that a “shocking majority” of Canadians are willing to sue small businesses.

While a total of 33 per cent of respondents said it’s “un-Canadian” to sue a small business owner, the majority of respondents found something they would sue them over.

According to the survey, 14.67 per cent said they would sue a small business if a product they bought from a company was defective or caused an injury or damage to their property while 7.76 per cent said they would sue if a small business suffered a cyber-attack and their confidential information was stolen.

The findings revealed that a combined majority of Canadians (86.9 per cent) think most other Canadians would sue or consider suing a small business “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," said Danish Yusuf, founder and CEO of Zensurance.com in a release. "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."

According to the survey, a combined total of 83.2 per cent of respondents think Canadians are more likely or “may be” more likely to sue a business now vs. five years ago.

While a total of 66.9 per cent said they believe that Canadians are less likely to sue a small business than Americans are, the survey found that a combined 81 per cent of respondents believe that Canadians who are financially struggling are more likely to sue a small business for something like a slip and fall accident.

A combined 96.4 per cent of Canadians also think it is very important or “somewhat important” for small businesses to have insurance coverage to protect themselves against potential legal claims and liabilities, according to Zensurance.com.

"The costs of defending your business in a lawsuit can be devastating," said Yusuf. "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."

As a result, participants were asked whether they have ever chosen not to pursue legal action against a small business out of concern for a business owner's financial stability, with 69.8 per cent responding with “no.” According to Zensurance.com, this indicates that business owners cannot depend on issuing apologies or discounts to customers who feel they were wronged.

The survey asked respondents which provinces they thought people were most likely to sue small businesses in and over half of Canadians said Ontario, which was followed by Quebec, Alberta, and British Columbia. According to the survey, Prince Edward Island, Saskatchewan, and New Brunswick were cited as provinces where it was the least likely people would sue small businesses.

The study also found that a combined 95.9 per cent of respondents think that Canadians steal from their employers while 56.2 per cent of Canadians think that more Canadians are likely to steal from their employers due to the state of the economy.

Zensurance conducted an online survey of 1,000 Canadian consumers from February 16 to 19, 2024.

Study reveals Canadians ‘surprisingly willing’ to sue small businesses

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