If your business is facing the possibility of a frivolous lawsuit, you may be on edge. It can be confusing if this is your first time, and you may not be sure what steps to take. The following are a few things you should know if you are threatened with a frivolous lawsuit.
Do not simply cave to the individual's demand and pay out
This is often what a business owner will do if the amount of money the person is asking for is small. If they were to file a claim against your liability policy, then your insurance rates will likely rise. On the other hand, if you settle, you could be seen as an easy mark by those that threaten with these types of lawsuits. You will be inviting more of these threats in the future by those who are looking for quick cash.
Gather as much evidence as possible
Although you may view the claim that a customer has made to be comical, you could still wind up in court. Make sure you take any photos that support the idea that the individual is making a frivolous claim of harm. You need to document any witnesses to the event that took place. This also includes the situation where there were no witnesses to the incident. For example, a person may claim they were called a name that was hurtful, but there was no one there to hear it.
Contact your insurance company
With the information you have, contact your insurance company. Most lawsuits of this type are covered under your general liability policy. If the individual who claims to have been injured wants your business's insurance information, you need only fill out an incident form and send it to your insurance provider. You can provide a copy of the form to the customer. At this point, a potential frivolous lawsuit may be stopped in its tracks. Insurance companies have a lot of experience rejecting claims, and if they believe there was no harm done, there will be no claim paid.
You may need to contact an attorney
It is still possible that you will be served with a lawsuit. If your insurance company denies the claim, and the customer hires an attorney, it may not be over for you. A personal injury attorney works on a contingency fee, and many of them will take a case hoping for a quick settlement. Unless your business is incorporated, your personal assets could be on the line. An attorney may intimidate you with this information. However, if you consult with your own attorney, you will understand your best course of action.
Frivolous lawsuits are often based upon exaggerated claims or simply made up. Do not settle these accusations, or your will be doing so again. Document everything and contact your insurance company. If you are served with a lawsuit, consult an attorney immediately. They can provide more information regarding stopping frivolous lawsuits.
Share30 November 2021
It can be hard to know what to do to protect yourself legally in the immediate aftermath of a car accident. You’re liable to be disoriented or in shock, you may be injured, and you’re surely worried about your passenger or the other driver. At least, that’s how I felt. The thing is, the things you say and do in the immediate aftermath of an accident may affect a legal case later. Depending on who’s at fault and what the laws are in your state, you may want to sue the other driver for damages, or you may find yourself being sued. My blog is designed to give you tips for a car accident lawsuit, no matter which side you find yourself on.