Q: What happens if somebody sues my business?
A lawsuit is a longer procedure than most people realize. First, you receive a notice that you're being sued (a "service of process"). Next, your lawyers file a response. Then both sides' lawyers request evidence and information from each other. If you cannot resolve this issue between yourselves, you go to court. This process can easily take a year or more. Many small-business owners invest in business insurance to pay for their lawsuits.
Why? Because even if your business isn't found liable of any wrongdoing, you'll have to pay a lawyer to defend it in court. Legal bills add up quickly, but liability insurance policies can cover the cost of not only lawyers' bills but also any damages, settlements, or judgments a court requires you to pay.
Still have questions? Fill out the Q&A form. We'll get back to you with an in-depth answer.