April Question of the Month: What Happens If Your Business Is Sued?

Insurance can help respond if your business is sued. It’s crucial to act quickly. Here are the first steps we recommend:

• Notify your insurance provider immediately. Most policies require prompt notice of a legal claim.
• Gather and preserve all relevant documents, such as contracts, emails and incident reports.
• Avoid discussing the case publicly or with the other party until you’ve consulted with legal counsel.
• Work closely with your insurer and attorney to respond appropriately to the lawsuit.

Several types of commercial insurance can help protect Georgia businesses when legal claims arise:

• General liability insurance: This coverage can help pay for legal defense costs, settlements or judgments if your business is sued for bodily injury, property damage or advertising injury.
• Professional liability insurance: Also known as errors and omissions (E&O), this policy can respond to claims of negligence or mistakes in your professional services.
• Employment practices liability insurance (EPLI): This coverage can help with claims related to wrongful termination, discrimination or harassment.
• Commercial umbrella insurance: Provides additional liability protection above the limits of your other policies.

At Express Auto Agency, we help Georgia business owners assess their risks and build insurance programs that offer appropriate financial protection. If you have questions about your coverage or want to review your policies, our team is here to help.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.