Defending a lawsuit can be fatal – much like a shark attack!
In fact, most businesses could not literally survive a large claim from a harassment victim, unhappy client or disgruntled supplier.
So what happens if a client sues over a decision you or another director made whilst running your business? What if an employee sues you because someone in the business harassed them?
BRW reported a staggering 15,000 unfair dismissal cases were bought against small and medium businesses in 2011 – with an average cost of $50,000 each (source Dual Australia).
There are now 5,000 individual legislative provisions in Australia where a company or individual could incur a statutory liability. With the tough economy we face today, most businesses could not afford this type of hit against their Profit and Loss sheet.
The most commonly effected industries are Construction, Distribution, Retail, Professional Services and IT Industries – many taking losses due to employee dishonesty.
KPMG Fraud Barometer noted the highest level of fraud ever in 2011 – a symptom of the economy – however the legal costs for civil and criminal trials (not to mention ATO fines), are enough to crush most businesses are unsustainable for the business