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What to Do if Your Business Gets Sued

By: SmallBizClub


Injured man consulting an attorney about a lawsuit.

Setting up your business can be one of the most fulfilling accomplishments of all time. After all your startup’s hectic processes, all you need to do is smoothly run your business. The last thing you anticipate to deal with in your business is a lawsuit. However, legal trouble can affect any business in various forms. It could be a personal injury lawsuit, breach of contract, or even discrimination charges. 

The most common lawsuits among startup businesses are personal injury lawsuits. Such lawsuits can easily cripple your business if not properly handled. As such, you may find it helpful to tactfully deal with any lawsuit that may arise as soon as possible. Here is what to do if your business gets sued.  

Steps to Take if Your Business Gets Sued

1. Contact Your Business Attorney

As soon as you receive the legal documents explaining the lawsuit, you will find it helpful to reach out to your business attorney. Review the lawsuit with them and allow them to counsel you on the best way to deal with the matter. 

In some cases, you may also need to take legal action to protect all your business’s sensitive data as you battle the lawsuit. Whatever the case, a good lawyer will know the best steps to take to preserve your reputation and prevent major financial losses that may crop up from the lawsuit.

2. Inform Your Insurance Providers

All small businesses need to have sufficient insurance coverage. This may vary based on your business and the kind of risks involved. In the event of a lawsuit against your business, you may have to inform your insurance company of the legal action taken against you. 

If your insurance covers various forms of liability, then there is a high likelihood that it may foot all the legal case costs, including the attorney costs. However, it is not safe to assume that your insurance will cover the costs. You should contact them and find out if your lawsuit is covered in your particular insurance plan.

3. Establish the Way Forward

After receiving the lawsuit documents and discussing with your lawyer, you should determine what approach you want to take. There are several options you can choose from. You may choose to settle the matter out of court or agree to continue with the lawsuit. For you to make an informed decision, it is best to understand all your available options and the implications they will have in your business. Your lawyer may be helpful in this case.

4. Find a Defense Attorney

If you do not have a lawyer on retainer, you may need to hire a defense lawyer. When doing this, ensure you get someone specialized in the lawsuit filed against you. Different law fields vary, and hiring a criminal defense lawyer in a slip and fall lawsuit may not be as helpful as hiring a personal injury lawyer. Remember that in the legal world, experience gives your lawyer an upper hand in winning your case.

Always Be Prepared

One of the golden rules in the business world is always to be prepared at all times. Legal trouble may befall you when you least expect it and leave crippling effects on their wake. You, therefore, need to be prepared to counter any of these challenges at all times. 

For example, if you have a possible personal injury case in the Florida panhandle area, having a personal injury lawyer in Pensacola on retainer is one of the best ways to prepare you for any looming lawsuits. Such a lawyer can advise you on some of the preventive measures you can put into place to prevent injuries and rid your business of any potential legal threat.

Published: July 6, 2021

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SmallBizClub.com is dedicated to providing small businesses and entrepreneurs the information and resources they need to start, run, and grow their businesses. The publication was founded by successful entrepreneur and NFL Hall of Fame QB Fran Tarkenton. We bring you the most insightful thinking from industry leaders, veteran business owners, and fellow entrepreneurs. Follow us on Facebook, Twitter, and LinkedIn.

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