The stress and disruption of handling a legal dispute has become familiar to three in 10 small business owners in the past three years, finds a survey by legal expense insurer DAS Canada.

The top three sources of legal conflict are:

1. Collecting money owed by customers.

2. Contract disputes with customers.

3. Contract disputes with suppliers.

Read: 6 tips for clients who lose their jobs

The survey also found:

  • 73% of owners say a legal dispute would have a tangible financial impact on their business
  • 27% of owners have set aside for legal disputes
  • 12% of owners feel they have sufficient insurance to cover unforeseen legal expenses
  • 10% of owners know another owner who lost his or her business due to a legal dispute

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