What Should I Do If My Small Business Is Sued?

What Should I Do If My Small Business Is Sued

Running a small business can be a risky venture. As long as your business is open to the public, you are responsible for ensuring its safety and legal compliance. However, no matter how careful you are, it is still possible for your business to be sued.

If you find yourself in this situation, it is important to act quickly and decisively. The most important thing is to seek out experienced legal advice as soon as possible. This will ensure that your rights and interests are fully protected.

This blog post outlines the most important steps to take when your small business is sued. Read on to learn more.


1.   Review the Case Carefully with an Experienced Attorney

The first thing you need to do when you receive the lawsuit papers is to review the content of the case carefully with an experienced business lawyer.

Check the caption and service information on the lawsuit papers to ensure it contains all the necessary information about your business.

If the information is incorrect in any way, your lawyer will be able to help you address the issue. In most cases, you can simply dismiss the lawsuit in its entirety.

However, some attorneys will insist on reviewing the allegations and put the lawsuit on hold until further information is provided.

You should also review the complaint carefully to determine what specific claims are being made against you or your business. This will help you understand the nature of the lawsuit and whether it is valid.

Avoid communicating with the plaintiff directly over anything related to the lawsuit. Instead, direct them to your lawyer so that all communications are done through a third party.


2.   Gather Information

Once you have gone through the lawsuit, it’s important to gather as much information as possible. This includes obtaining copies of any documents filed with the court and determining who exactly has filed the lawsuit against you.

You also need to review any evidence or documentation in your possession that can help you defend yourself. This includes contracts, emails, bank statements, invoices, and other documents that could help prove or disprove the plaintiff’s claims.

In addition, it is important to speak with potential witnesses who may have information related to the lawsuit. Their statements can be valuable in helping your lawyer build a defense for you.


3.   Inform Your Insurance Company

Every business is required to have some form of liability insurance in place. It is important to inform your insurance company as soon as possible if you are sued.

The insurance provider can provide legal advice and representation on behalf of your business, which can help protect you from potentially costly damages awards or judgments.

Also read: 8 Insurance Policies You Need For a Small Business!

Failure to inform your insurance provider about the lawsuit could result in your claim being denied.


4.   Create a Defense Strategy

Once you understand what the plaintiff is seeking, it’s time to create a defense strategy for your case. Your attorney can help you come up with a plan of action and explain what defenses you may be able to raise in court.

Your defense strategy should include an evaluation of the evidence and a plan for addressing any issues that could weaken your case.

It’s also important to consider alternative dispute resolution methods, such as mediation or arbitration, which may be more cost-effective than going to trial.

However, it is important to explore all options since the plaintiff may be more likely to settle if they know you are prepared to go to trial.


5.   Take Appropriate Action

It is critical to take appropriate legal action as soon as possible. This can mean filing motions to dismiss or counterclaim, depending on the situation. It is important to work with your lawyer to determine your case’s best course of action.

You should also be prepared to go to trial if that is what it takes to protect your rights and interests.

Your attorney can help you prepare for a trial by filing all necessary motions, preparing witnesses, and developing a strategy for the courtroom.


6.   Prepare for Trial

If your case goes to trial, you need to be prepared. This includes understanding the relevant laws and any evidence that could help your case. You also need to be ready for cross-examination and other courtroom proceedings.

Your lawyer can help you understand what to expect in the courtroom. They can also provide advice on how to address any issues that may arise during the trial.

Your attorney can also help you prepare for trial by answering any questions you may have about the process and helping you understand your rights in the courtroom.

Also read: When A Small Business Needs Workers’ Compensation Insurance?

At this stage, your lawyer should be able to advise you on the best way to present your case at trial and give you an estimate of how long it will take for a verdict to be reached.



Dealing with a lawsuit can be a confusing and overwhelming process. However, by taking the right steps, you can protect your rights and interests while making sure that justice is served.

From reading through the lawsuit to building a defense strategy and preparing for trial, there are many steps involved in responding to a lawsuit.

Working with an experienced lawyer is the best way to ensure that your case is handled properly and that you receive justice. Good luck!