Owning a company comes with risks, which are higher for some types of businesses than others. If you find out that your company is facing a lawsuit, you must ensure that you are prepared to handle it. Defending your business starts as soon as you know that there might be an issue at hand.
One of the most important things that you can do is review the case with your attorney. This gives you an idea of what to expect. You may also find out some very direct ways that you can protect the business you’ve worked hard to build. Once you learn your options, your attorney can find out what direction you want to take and move toward it on your behalf.
You shouldn’t ever destroy anything that relates to the lawsuit. Some companies have a policy about destroying paperwork and similar items, so be sure that you outline a policy to preserve evidence if it would fall into that policy. This ensures that your employees don’t accidentally destroy or damage something critical to the lawsuit.
Never try to attempt to communicate with the party who’s filing the lawsuit. Instead, your attorney should work with that party’s legal counsel so that there aren’t misunderstandings or issues with the information that’s passed along.
If you have insurance on your business, you must report the issue to your insurance company. Your policy might cover some of the costs associated with the lawsuit, but you must ensure that you comply with the reporting requirements.
Your goal must be protecting your company. In order to do this, you need to be able to focus on it while the lawsuit is moving forward. Your attorney can field the legal matters while you build your business and help it recover from the issues.