What to Do If your Business Gets Sued
No one wants to deal with getting sued, especially when they’re focused on building a business. But if your company is served with legal papers, your response can make a big difference in the outcome. Here are some steps you can take to protect your business:
Immediate Action Timeline (Days 1-5+)
1. Don’t Ignore It
Ignoring a lawsuit won’t make it go away. In fact, it could lead to a default judgment against your business. As soon as you receive notice, document everything and note the deadline to respond. Also, make sure that your support staff know what to do when they receive legal documents so that nothing gets lost, and ensure that your company’s address is up-to-date in your state of registration.
2. Notify Your Lawyer Immediately
If you have in-house counsel, reach out to them as soon as you’re served. If you don’t have in-house counsel, you can contact Fryman PC for your litigation needs. You can book a call and we’ll help you discuss next steps, evaluate claims and defenses, preserve evidence, and prepare a response strategy.
3. Check for Insurance Coverage
Your company’s general liability, directors and officers (D&O), or errors and omissions (E&O) insurance may cover certain legal claims. Notify your insurer promptly—delay could result in a denial of coverage.
4. Preserve All Evidence
Implement a litigation hold. That means saving all documents, emails, and communications related to the dispute, and instructing your employees to do the same. Deleting or altering files—intentionally or not—can have serious legal consequences.
5. Be Strategic About Communication
Do not contact the opposing party directly. Avoid discussing the lawsuit with employees, customers, or on social media. Let your legal team handle all external communications.
What to Do If your Business Gets Sued
Final Thoughts
No founder wants to deal with litigation, but lawsuits don’t have to derail your startup. Stay calm, act quickly, and rely on experienced counsel to navigate the process. If your business has been sued, or you’re concerned about a potential claim, let’s connect and we’ll help you make sure your business is protected.