One of the last things you want to have to deal with as a business owner is a lawsuit. However, regardless of how much you protect yourself, there may come a time when you’re facing a lawsuit that could potentially destroy your business. So to keep this from happening to you and guide you on your journey through litigation, here are three things you should do when your business is being sued.
Start Working With An Attorney
As soon as you’re informed that you’re being sued, no matter what the reasoning is, the first thing you’re going to want to do is contact your attorney and get them involved in this process. Especially for busy business owners, you likely don’t have time to keep running your business and try to figure out everything that’s going on with the lawsuit. Additionally, Marci Martin, a contributor to Business News Daily, shares that working with a good lawyer is going to ensure that you’re following the letter of the law and that you’re not overlooking or forgetting anything that could apply to this lawsuit. So while you might have a little experience with the law, it’s going to be much more helpful if you have an active and practicing lawyer on your side at this point in time.
Check Your Business Insurance
Once you find out that you’re being sued, your mind might immediately jump to the worst case scenario of how this situation could be resolved. But if you’ve prepared for this by having quality business insurance, you should be able to rest a little easier. To see if you’re going to be adequately covered for whatever will happen with this lawsuit, Komal Nathani, a contributor to Entrepreneur.com, recommends checking your business insurance to see if you have enough coverage for this particular type of lawsuit. You may have generalized liability coverage or specialty coverages that could prove to be very useful for the case you’re being sued over.
Try To Stay Out Of Court
To save yourself both time and money, it’s a good idea to try to stay out of court if at all possible. This means that you’ll be settling the case on your own, with the assistance of your lawyers. However, if you do end up having to go to court because you weren’t able to settle the suit together, Geoff Williams, a contributor to American Express Open Forum, warns that you leave your emotions at the door. While this very well can be an emotional time and experience for you, you want to try to be as level-headed as you can to give yourself the best chance of a positive outcome for your business.
If your business is being sued, consider using the tips mentioned above to help you best navigate these unfamiliar waters.