Nearly one in six small business owners, 14%, say that stress caused by legal matters has led to a physical or mental health condition, Direct Line Business Insurance research shows.
Meanwhile, more than four in ten, 41%, UK small business owners said they have found staying on top of legal matters stressful, while more than a third, 34%, said that they have had sleepless nights.
Furthermore, more than one in ten small business owners said their stress levels are likely to increase, despite the COVID-19 lockdown slowly ending. While 13% expect their stress levels to increase over the next 12 months.
Small business owners may be increasing the risk of stress by not paying close attention to regulation changes, 40%, or underestimating the threat legal matters can present. Over half of these SME owners do not do this because they believe there are no substantial legal risks to their business right now. Seventeen per cent said that they do not currently have the time to stay up to speed.
Jane Morgan, SME product manager at Direct Line, said: “The evidence is clear. Legal matters can have damaging effects on mental health.
“Staying on top of legal matters may seem daunting at first, but with a few simple checks and by accessing the right resources, small business owners can stay one step ahead and avoid sleepless nights.”