• Nearly one in six small business owners (14 per cent) say that stress caused by legal matters has led to a physical or mental health condition
• More than four in ten (41 per cent) small business owners say they have found staying on top of legal matters stressful
• Health and safety, late payments/debt recovery and Brexit-imposed regulation changes have been some of the most stressful legal matters for small business owners
• But many small business owners are increasing the risk of suffering stress by not paying close attention to regulatory changes (40 per cent)

Nearly one in six small business owners (14 per cent) say that stress caused by legal matters has led to a physical or mental health condition, according to new research from Direct Line business insurance.¹

More than four in ten (41 per cent) UK small business owners say they have found staying on top of legal matters stressful, while more than a third (34 per cent) say that they have had sleepless nights. 

This is concerning because more than one in ten small business owners say their stress levels are likely to increase, despite the Covid-19 lockdown slowly drawing to a close. As well as this, 13 per cent expect their stress levels to increase over the next 12 months.

The most stressful legal matters causing anxiety among small business owners are:

• Health and safety (28 per cent)
• Late payments and debt recovery (26 per cent)
• Data protection (GDPR) matters (19 per cent)
• Redundancy or furlough matters (18 per cent)

Small business owners may be increasing the risk of stress by not paying close attention to regulation changes (40 per cent) 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. 17 per cent said that they do not have the time right now to stay up to speed.

When questioned about potential solutions, almost two fifths (37 per cent) of those surveyed said that the ability to call a free helpline and receive legal advice over the phone would make managing legal matters less stressful.

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. “Our Legal Essentials offering – with its free, 24/7 ² legal advice and counselling helpline, provided alongside our legal document and guide service – helps small business owners to stay compliant, giving them the value they need right now, as well as helping to give peace of mind.”

Direct Line’s packaged legal service proposition provides SMEs with DAS Businesslaw, a free legal document and business guide service that comes with any Direct Line business insurance policy. The service, designed to solve everyday legal needs, is provided in partnership with DAS UK, the UK’s leading provider of specialist legal expenses insurance ³

Direct Line customers also have access to a 24/7 legal advice helpline. Whether SMEs are facing a serious legal issue, or just want to check something with a solicitor, small businesses can consult a team of legal experts whenever they need to.

Small business owners can also access a library of legal templates, tools and guides to help them run their business and stay compliant with the latest regulatory changes. They can use the service to create ready-to-sign contracts, agreements, policies and letters. All documents are developed and regularly updated by legal experts and are customisable.

The service can help in over 23 business areas. These include concerns with business planning and growth, disagreements, late payments and debt recovery, tax, Brexit imposed regulation, health and safety, Covid-19, data security and protection, fundraising, family business matters and sub-contracting.

The legal package is suitable for any SME. The service flexes to meet the needs of small businesses from newly formed sole traders to established Ltd companies or partnerships.

For more information on Legal Essentials please visit:

https://www.directlineforbusiness.co.uk/small-business-insurance/legal-essentials  

For information on how to reduce stress at work when running a small business please visit:

https://www.directlineforbusiness.co.uk/small-business-insurance/knowledge-centre/running-your-business/beating-business-stress-tips

 

ENDS

(1)    Opinium survey of 250 small business owners conducted 5^th-10^th February 2021

(2)    England and Wales only; advice in other jurisdictions is available 9am-5pm Monday-Friday, excluding bank holidays.

(3)    Document services and legal advice helpline are provided by DAS Legal Expenses Insurance Ltd.

Direct Line Group
Unni Henry
Senior PR Consultant
Email: [email protected]

Eulogy
Michael Hindmarsh
Account Director
Mobile: 07415 396642
Email: [email protected]

About Direct Line business insurance

Launched in 2007 Direct Line business insurance now has over half a million customer policies, proving a flexible range of insurance products for the landlord, van and small business sectors.

Direct Line business insurance policies are underwritten by U K Insurance Limited, Registered office: The Wharf, Neville Street, Leeds LS1 4AZ. Registered in England and Wales No 1179980. U K Insurance Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Direct Line business insurance and U K Insurance limited are both part of Direct Line Insurance Group plc.

Customers can find out more about Direct Line business insurance products or get a quote by calling 0345 301 4827 or visiting https://www.directlineforbusiness.co.uk