When you own a business, you're vulnerable to litigation. Virtually anyone you come in contact with on a professional basis could turn into a future litigant, including customers, employees, or the people you order your supplies from. Knowing this, it's important that you prepare yourself for the possibility. That way, you know exactly what to do if you ever are sued. Here are four important steps you should take if your business is sued.
Don't Ignore the Demand Letter
When someone is going to sue your business, you'll receive a demand letter. The formal demand letter will be your first notification that someone intends to sue you. In most cases, it will lay out exactly what you did wrong – according to the person sending the letter – and how they want you to rectify the situation. You don't want to ignore the demand letter. If you do, it's almost certain that the next step will be the formal lawsuit. As soon as you receive the demand letter, acknowledge the receipt and then sit down with an attorney.
Hire a Business Lawyer
Once you receive the demand letter, you need to sit down with a business lawyer. They'll be able to address the concerns laid out in the letter, and prepare you for the next phase. In some cases, you'll be able to take steps to avoid the lawsuit. However, there will be other times when a lawsuit is unavoidable. In either case, you're going to need to have a business attorney representing you.
Contact Your Insurance Company
As soon as you're served with paperwork concerning a lawsuit, you need to contact your insurance company. Your business policy may have coverage that will provide assistance for the suit. However, if you don't notify your insurance company in a timely manner, they may refuse to provide coverage for the lawsuit. Don't risk being left without coverage. Notify the insurance company as soon as you're served.
Gather Your Documents
If you're being sued, you're going to need evidence to support your side of the complaint. That's where your documents come into play. Once you're served with papers regarding the lawsuit, you need to start gathering your documentation, including all the business records that pertain to the suit. Place them in a file and give them to your attorney. That way, you know that they're in a safe place. Not only that, but your lawyer will need access to your records to properly defend you against the claims.
Contact a firm, like JACOB ROSS LAW, for more help.