What Happens If Your Business Gets Sued?

The Legal Process

1. Claim Letter or Court Documents - You receive formal notice of the claim
2. Notify Your Insurer - CRITICAL: Contact them immediately
3. Legal Defense - Your insurer appoints lawyers to defend you
4. Investigation - Evidence gathering and witness statements
5. Settlement or Court - Most cases settle out of court

Costs Without Insurance

• Legal defense: $10,000-$100,000+
• Settlement or judgment: $50,000-$500,000+
• Court costs and expert witnesses
• Time away from your business

How Insurance Protects You

Insurance covers legal defense costs AND settlements/judgments up to your policy limit. Without it, you pay everything from your business and personal assets.