The Moment Nobody Wants

A process server hands you papers. You’ve been sued. The initial shock is normal, but how you respond in the next few hours and days affects the outcome. Knowing what to do—and what not to do—helps you navigate this stressful situation.

Don’t Panic, But Don’t Delay

Lawsuits have deadlines. The complaint specifies how many days you have to respond—often 20 to 30 days, sometimes less. Missing this deadline can result in default judgment against you. Time matters, so begin taking action immediately.

Read the Complaint

Understand what you’re being accused of. Who is suing you? What do they claim happened? What are they seeking? This information helps determine whether insurance coverage applies and what kind of response is needed.

Notify Your Insurance Agent Immediately

Contact your agent the same day you receive the lawsuit. Your policy requires prompt notification of claims and potential claims. Delay can jeopardize coverage. Forward copies of everything you received.

Your agent will determine which policies might respond and notify the appropriate carriers. They’ve handled this before and can guide you through the process.

What Your Insurance Provides

If the lawsuit falls within your coverage, your insurance provides two crucial things: a defense and indemnification.

The defense duty means the insurance company provides and pays for attorneys to defend you. This alone can be worth tens of thousands of dollars. The indemnification duty means they pay covered settlements and judgments up to your policy limits.

The Insurance Company’s Response

After receiving notice, the carrier reviews the complaint against your policy terms. They determine whether the allegations could potentially be covered. If so, they assign a defense attorney and begin the defense.

Sometimes coverage questions exist—the carrier may defend under a “reservation of rights” while investigating coverage issues. This protects both parties while facts develop.

Your Role During Litigation

Cooperate with your defense attorney and the insurance company. Provide documents they request. Attend depositions and hearings as required. Don’t discuss the case on social media or with people outside the defense team.

Don’t admit fault or make statements that could be used against you. Let your attorney handle communications with the other side.

If Coverage Is Denied

If the insurance company denies coverage, you’ll need to decide whether to accept that decision, dispute it, or retain your own defense counsel. An insurance coverage attorney can evaluate whether the denial is appropriate.

Even if coverage is initially denied, circumstances sometimes change as litigation develops.