Most Common Business Lawsuit Types
Breach of contract claims are most common -- alleging one party failed to honor contractual obligations. Employment claims (discrimination, wrongful termination, wage theft) represent a major category. IP claims (trademark, copyright, trade secret) arise when competitors misappropriate business assets. Tort claims (negligence, product liability) arise from incidents causing harm to third parties.
How to Respond When Your Business Is Sued
When served with a lawsuit: the response deadline is typically 20-30 days. Contact your business litigation attorney immediately. Preserve all relevant documents. Notify your insurance carrier, which may have a duty to defend. Never contact the opposing party without your attorney.
Business Insurance Coverage
Commercial general liability (CGL) covers third-party bodily injury and property damage. Employment practices liability (EPLI) covers discrimination and wrongful termination. Professional liability/E&O covers service claims. Directors and officers (D&O) covers management decisions. Product liability covers defective product claims. Review your coverage with a broker to identify gaps.
Preventing Business Lawsuits
Well-drafted contracts with dispute resolution clauses; robust HR policies and employee handbook; proper IP registration; adequate insurance; and a business attorney relationship for proactive counseling all reduce litigation risk significantly. Related: Lawsuit Against Employer.
How to Get Legal Help
If you believe you qualify based on the eligibility criteria described above, the next step is a free consultation with an experienced attorney. Most plaintiff-side attorneys handling these cases work on contingency -- meaning you pay nothing unless your case results in a recovery. Bring any relevant documentation including receipts, correspondence, or evidence of the harm you experienced.
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Business Lawsuit Guide: Protecting Your Company & Responding to Claims: Frequently Asked Questions
Answers to the most common questions about this case and your legal options.
What is the most common business lawsuit?
Breach of contract, followed by employment claims and IP disputes.
What to do when my business gets sued?
Contact your business attorney immediately, preserve documents, and notify your insurance carrier.
Does business insurance cover lawsuits?
Depends on claim type. CGL covers third-party injury; EPLI covers employment claims; E&O covers service errors.
How long do business lawsuits take?
Simple contract disputes: 6-18 months. Complex litigation: 2-5 years. Most settle before trial.
Do I need a business litigation attorney?
Yes. Substantial business lawsuits require experienced commercial litigation counsel.