To most small business owners, their companies are like another child. They created it, funded it and nurtured its growth and development.
Finding out that your business is the defendant in a lawsuit can be shocking. But while the news may be startling, it is not out of the norm. Small businesses get sued all the time. Below is some important information for business owners facing litigation.
Understand your situation
Understandably, your first reaction may be to clap back legally with a countersuit or worse, with social media posts. But neither response is the measured approach to take. Now is the time to get down to brass tacks and understand what you truly are facing.
Taking the time to get a legal review of the complaint filed against you is always prudent. Litigation can be complex, and some business owners might not immediately understand the process involved with resolving the lawsuit.
This helps you in a couple of different ways. A legal review can inform the defendant of any mistakes with service or misinformation included in the complaint. Egregious mistakes can cause the plaintiff’s complaint to be dismissed.
Loop in your insurance carrier
Your insurer will need to know that you have been served with a lawsuit. In fact, this is likely a requirement and will be stated in your policy documents. You want to give your insurance company as much time as possible to respond within the time constraints of the lawsuit. Failing to do so could adversely affect your insurance coverage.
Understand that settling could be your best option
Even though you might not feel that settling the complaint is the best course of action, if your insurance carrier decides it is the most cost-effective way to resolve the matter, you
