Most business decision-makers find legal documentation to be a source of anxiety – Solicitor Scotland Law firm
Dealing with legal documentation is a distressing experience, according to over half of decision-makers at small firms.
This is the conclusion of recent research conducted by Direct Line Business Insurance.
In addition, 25% of decision-makers reported that they were unable to concentrate due to anxiety over legal documentation, while 24% reported that they had experienced sleepless nights. This tension is having a significant psychological impact.
19% of respondents reported that the stress became so overwhelming that they contemplated closing their firm or taking a break from their business, while an additional 23% reported developing mental health issues.
The investigation also disclosed that decision-makers have consistently committed errors when evaluating or composing legal documentation.
Almost 20% of respondents have reported that they have made frequent errors, which could have placed their organisation at serious risk.
According to Direct Line, a pervasive lack of confidence appears to be the cause of stress and inaccuracies. Specifically, 28% of decision-makers report feeling unconfident when it comes to drafting or reviewing legal documentation related to their firm.
This is partially because numerous forms of legal documentation can be perplexing.
Certain categories of legal documents may be difficult for certain decision-makers to comprehend due to their lack of research on the broader regulatory landscape.
Only 19% of respondents consider themselves to be highly cognizant of the impact of evolving regulations on their business.
Alison Traboulsi, product manager at Direct Line Business Insurance, stated:
56% of small business decision-makers often struggle with reviewing and drafting legal documentation.”The process is causing them tension and confusion, which is resulting in errors that could potentially expose their organisation to legal risk. It is preferable to prevent than to treat. Numerous small and medium-sized enterprises (SMEs) are unaware that it is feasible to obtain legal counsel from other business entities, including their insurance provider, regardless of the magnitude of the matter. This can assist them in enhancing their understanding of the most prevalent legal matters, thereby minimising their risk.
The most perplexing legal documentation types and the percentage of respondents who find them perplexing:
- Contracts for the sale and purchase of services from other organisations 14%
- Contractor documentation 13%
- Policies that prioritise flexibility in the workplace 12%
- A percentage of 11% pertains to trademark and copyright licences.
- Policies regarding data protection 10%
- Contracts with employees comprise 19%
- Templates for Covid-19 risk assessments comprise 18%
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