When your business gets sued, the first logical step is to contact a business attorney. Unfortunately, many business owners often get upset or overwhelmed that they make mistakes along the way. Remember, your business’s reputation is being tested, and your actions will determine the way forward both for you and your business.

When a business gets sued, it could be filed by employees, vendors, clients, or even another company in the marketplace. It isn’t the time to fidget, but rather take calculative actions that play in your favor. So, here are a few of the steps to follow to ensure you come out without incurring any damages.

  1. Review With An Attorney

Like already stated, the first and foremost step is to get across your business attorney. If you don’t already have one, don’t hesitate to hire one as soon as possible. When reviewing the case with your attorney, check the caption and service information on the lawsuit to identify the entity or person filing the lawsuit.

In an event where the information is false, you can dismiss the action entirely and go about your daily business. However, if the reverse is the case, you should go ahead and review the allegations and put litigation on hold. By doing this, you reserve all data that may be related to the legal action. Try your best to preserve all data relating to the lawsuit, as they are crucial for the battle ahead.

  1. Don’t Communicate Directly With The Plaintiff

Anything you say regarding the lawsuit could be used against you in a court of law. If you don’t want to fall into that ugly rut, never communicate with the plaintiff, no matter what. You know why? The time for talking or resolving the issue ends the moment they file a lawsuit. If you must talk to anyone at all, it should be your attorney.

However, if you’re related to the person, like an employee or company with whom you have an ongoing relationship, ensure you state never to discuss the lawsuit with them. Under no circumstance should you contact the plaintiff and try to resolve the case after a lawsuit has been filed.

  1. Notify Your Insurance Provider

There are lots of business insurance policies that cover companies in the event of a lawsuit. For instance, third party injury claims or accusations or defamatory remarks about competitors are usually covered by general liability insurance.

If your clients file a lawsuit claiming that your work caused them some financial loss, such a case is often covered by a professional liability policy. Simultaneously, suits from employees are covered by employment practices liability insurance or employer’s liability insurance. When you contact your insurance provider, your options will be laid out for you.


By working closely with a defence attorney, you’re more likely to salvage the situation and get back to business as soon as possible. If your company doesn’t have a lawyer or retainer, your insurance company might provide one for you. In that case, you have nothing to worry about other than to play the ball well.

Contact Lamb, Carroll, Papp and Cunabaugh, P.C., Attorneys at Law today for legal help.