Businesses must take steps to deal with a professional liability lawsuit that is the result of a job gone bad. If you provide business-to-business services, you know how important it is to protect yourself with a contract, establish clear expectations with your client, and implement a dispute resolution process. Even if you do all these things, a job can go awry, and you may face significant losses — or worse, litigation. In the latter scenario, there are several ways you can limit your risk going forward.
How to Overcome a Professional Liability Lawsuit
Find out how to respond to a lawsuit and why professional liability insurance is the best protection.
Get Professional Liability Coverage
Professional liability insurance is the best protection you can get when it comes to lawsuits and other business liabilities. Many companies mistakenly assume that a standard business insurance policy offers sufficient protection, but this often isn’t true. Professional liability covers exposures that other types of policies do not. It includes risks such as subpar craftsmanship, professional misconduct, or project delays, which could cause a lawsuit. Avoid liability costs by investing in your business’s professional liability insurance policy.
Enlist Help From an Experienced Attorney
If your company is already facing a lawsuit, it’s time to consult an attorney to determine your options. Sometimes, your business or professional liability insurance provider may choose your legal representation. If you can select your own counsel, look for an attorney with extensive experience handling business disputes and litigation. In addition to providing you with legal counsel, your lawyer will manage all communications with the plaintiff. You mustn’t interact with the other business directly.
Decide the Best Way To Respond
With help from your attorney, you will need to strategize a plan for responding to the suit. Most lawsuits require the defendant to submit a written response to the charges within 30 days of filing. It is often the most complicated part of the process and is essential to resolve. Generally, you have several options. You can either accept or deny the plaintiff’s claims, and you can enter your own claims into the suit, too. You will also indicate whether you prefer a trial with a jury or are willing to entertain a settlement.
Reach Out to Your Professional Liability Insurer
Finally, if you haven’t already, you need to reach out to your professional liability insurer and let them know that you are facing a lawsuit. In most cases, this will result in a claim against your policy, and your insurer can guide you through filing the claim. Although this is stressful, your insurance can mitigate the burden that a lawsuit would otherwise impose on 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.
