News Article Published:
Thursday, 15 May 2008
Category:
Legal
Businesses are facing an increased threat of litigation proceedings due to the growing compensation culture, according to research by Lloyd's.
The number of product recalls rose by 50 per cent in Europe in 2007 as directors struggled to meet liability risks.
Increased legal marketing has no doubt had a hand in forcing firms to buck their ideas up as two thirds of business leaders expect to spend more time on litigation issues over the next few years.
Lloyd's chairman Lord Levene suggests that businesses of all sizes are likely to seek representation by responding to legal marketing.
He explained: "No matter what their size, location or industry, all businesses are facing increasing liability risks.
"An increase in litigation and the fear of potential liability issues is impacting customers through a rise in the cost of products and services and also stifling risk taking amongst boards who are missing out on new opportunities."
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