As a business owner, you must know what to do when someone sues your company and take appropriate measures. According to research, 43% of small businesses face a threat of litigation every year. Some of these threats are empty attempts to intimidate, but some of them will, unfortunately, come to fruition. When somebody sues your company, you need to have a plan to defend yourself and your business.
Know The Steps to Take When Someone Sues Your Company
A lawsuit can devastate your business financially and damage its reputation. Follow these four steps to mitigate a lawsuit’s impact on your business.
Get an Aggressive Ohio D&O Insurance Attorney
Hiring an effective attorney is an essential step toward beating a potential lawsuit. You should seek a lawyer with prior experience handling business lawsuits and somebody with a clear legal defense strategy. To find this attorney, you should interview potential candidates and ask about their experience defending companies like yours. Consider whether they can confidently answer your inquiries. Remember that you want an attorney who’s aggressive enough to fight for your business.
Follow Legal Procedures
Even before you hire an attorney, it’s essential to follow all legal procedures that apply to your case. Navigating the litigation process is stressful for anybody, but it’s incredibly taxing when you’re still trying to keep your company afloat. Remember to comply with legal orders, including directions not to contact the plaintiff, which is common. Similarly, if you need to furnish legal documents or provide a statement, you should comply and do so promptly. Resisting these requirements will only slow down the case and prevent your lawyer from advocating for you effectively.
Handle Insurance Issues
In many cases, a lawsuit will impact your insurance coverage. If you have Ohio D&O insurance, it may include coverage for some expenses of litigation. D&O liability insurance covers businesses in instances of litigation against an individual. If you face a lawsuit for an infraction involving your business, you need to ensure that you have the right business insurance to protect your personal and business assets. Liability insurance for businesses can cover both. If you are facing a lawsuit, notify your insurer to see how your policy may protect you.
Decide How To Respond With Help From Your Ohio D&O Insurance Agent
Deciding how you’ll respond is vital when managing a lawsuit against your business. It’s understandable to want to fight against a legal attack in court and defend your company’s name. Sometimes, though, opting for a trial isn’t the best decision. You should also consider resolution options such as settlements and mediation. The cost of winning a trial could surpass the cost of a settlement. Consulting with your attorney and insurer will help you better understand which response is the best route forward for your business.
About Haughn & Associates
Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.
