• October 5, 2022

Important Steps to Take If Your Business is Sued

 Important Steps to Take If Your Business is Sued

Getting sued can be a very stressful experience. You’re probably dealing with your worst nightmare as a business owner if you are getting sued. Fortunately, there are things you can do to minimize the potential damage and receive the best possible outcome. Following is a list of steps you need to take if your business ever finds itself facing a lawsuit.


Contact An Experienced Attorney

The first thing you must do if your business gets sued is contact an attorney and see if the plaintiff has a case. Whether the plaintiff is a former employee or a customer, you should never reach out to talk to them. The time for discussion and conflict resolution is over, and anything you say can be used against you in court. Once you’ve reviewed the case with your business attorney and the attorney thinks they have a case, it’s time to move on to the next step.


Collect All Relevant Data Pertaining To The Lawsuit

It is common for companies to have a data destruction policy. Proper data destruction protocol is important for privacy and legal reasons. However, once your business has been served with a lawsuit, you should immediately stop all data destruction until your attorney says otherwise. Gathering relevant evidence from collected data can be challenging and time-consuming. 


Ease the burden of this process with eDiscovery services. These services can help your legal team recover the data they need to help you build your defense with ease. They are a very efficient way of reducing the financial cost of your lawsuit and speeding up the process, so a resolution happens quickly.


Get Ahold Of Your Insurance Company

While many lawsuits are covered under comprehensive insurance policies, you cannot be sure until you contact your provider. If your case is covered, make sure that you send all relevant documents to your insurer. This way, the insurance company can retain counsel on your behalf, and your insurance coverage remains intact. If your insurance company states that you do not have coverage in this situation, you need to contact an experienced defense attorney specializing in litigation procedures.


Make A Decision On How To Move Forward

When you are in the middle of a lawsuit, you want a quick resolution to the situation so you can get back to your life. You can either admit to or deny the allegation, provide a counterclaim, or decide to take the matter to trial. Depending on the strength of the plaintiff’s case, you may be justified to take them to court. You might also decide to settle with them out-of-court. Wherever your decision lies, you need to listen to the advice of your attorney and not make any hasty decisions without giving it proper thought.


Keep Your Business Running Smoothly

It’s easy to become distracted and unfocused when your business is getting sued. However, you still have to run and manage it as efficiently as possible. Make sure you are still tending to daily matters and continue to focus on your bottom line. Whether you end up winning or losing the case, the success of your business depends on you. Don’t let the lawsuit affect your ability to manage it, and keep your head held high.


Protect Your Business From Future Lawsuits

Once your lawsuit has reached a resolution, it’s time to protect your business from future lawsuits. This step requires reflection on your part, especially if the lawsuit ended in the plaintiff’s favor. Make sure you adhere to ethical hiring practices, and your employees receive training on anti-harassment and anti-discrimination policies. Check your record books and ensure they are accurate and up to date. If the lawsuit was not covered under your insurance policy, you should quickly find comprehensive coverage in case of copycats.


Closing Remarks

Many business owners are tempted to stay late at work or skip their self-care routines due to the stress a lawsuit brings. Find the time to tend to your needs and focus on your well-being. Although a lawsuit can cause anxiety and make you fear for the future of your business, you’re not alone. Many successful businesses have survived lawsuits and are still going strong today. By following these steps you’ll be able to increase the potential of a successful outcome.


Robin Williams

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