What a Business Should Know About Staying in Business During a Lawsuit

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Running a business can be stressful enough, but when dealing with a lawsuit and the resulting legal proceedings, it can feel like everything you’ve worked for is at stake.

However, many businesses deal with lawsuits through their tenure; in fact, a U.S. Chamber Institute of Legal Reform study showed that “43 percent of small businesses were threatened with, or engaged in, litigation.”

Despite the added stress, it’s more than possible to stay in business while involved in a lawsuit.

What Are Common Business Lawsuits?

Businesses face a few common types of lawsuits, such as:

  • slip and fall accidents
  • breach of contract
  • premises liability 
  • auto accidents involving an employee
  • employee discrimination
  • customer discrimination 
  • harassment against an employee or customers
  • employee injury
  • and intellectual property rights 

Of these, some of the most common lawsuits are brought against businesses by employees and customers. 

What Should I Do If My Business Is Getting Sued?

If someone is suing your business, call the Knox Law Center immediately. Our experienced team of litigators will provide you with a free consultation to discuss your case and help you understand where you stand. 

Next, do not talk to the person suing you, no matter what. Moving forward, a lawyer from Knox Law Center will discuss your case with the plaintiff’s lawyer. Now it’s time to inform your insurance provider of the pending litigation. Many business insurance types will protect your company from lawsuits, but general liability won’t cover issues such as breach of contract. 

After you’ve talked to Knox Law and your insurance provider, start collecting information about the case. You’ll need to collect information pertinent to the lawsuit, such as employee records, any camera footage, or financial books. Don’t cover anything up, and share all your information with the Knox legal team. 

Most importantly: continue running your business during this lawsuit. The Knox Law Center will deal with your case so you can concentrate on cash flow, keeping customers happy, and running a successful business. We’ll engage you when it’s necessary and present you with concise options and recommendations about what you can do next. 

Continue serving customers and encouraging them to post positive reviews online, treat all employees fairly, and ensure your property or store is safe for everyone involved. 

Depending on the type of lawsuit, you may consider running a training for employees, such as an anti-discrimination lawsuit, CPR training, or reviewing the employee handbook. 


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Mar 4, 2020
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Allen is the best lawyer I've ever met! His character is genuine, and there is a warmth about him that makes you feel so comfortable. If you ever get into a situation with DWI, and feel truly remorseful for what happened, HIRE him for the BEST chance possible. I previously spent 6000$ on an attorney who just didn't feel like they really gave me the personal care that I needed. They were only in it for the money. After hearing raving reviews about Allen, I fired my lawyer and took a leap of faith with Allen. Even though I had to pay two separate times and could not get a refund for the previous lawyer, IT WAS WORTH EVERY PENNY!!!! He won my case with dignity, respect, and care and I am forever thankful to him for this.

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