What Should I Do If My Florida Business Gets Sued?: Immediate Steps to Protect Your Company

The process server has just handed you a lawsuit naming your St. Petersburg business as a defendant—the next 24 to 48 hours are crucial. How you respond to this notice determines whether you defend effectively, negotiate favorable terms, or face default judgment and serious consequences. 

Business lawsuits in Florida move fast, involve strict procedural deadlines, and create exposure that extends beyond the claims in the complaint. Ignoring service, contacting the plaintiff directly, destroying documents, or posting about the lawsuit on social media creates additional liability and undermines your defense.

At Lopez Law Group, our St. Petersburg business litigation attorney represents companies facing contract disputes, commercial litigation, and civil claims across Pinellas County and the Tampa Bay area. The steps you take immediately after service shape the entire trajectory of your case.

rel=”noreferrer noopener nofollow”>CALL FOR A CASE EVALUATION

Key Takeaways for What to Do If Your Business Is Sued

• Stop all communication with the plaintiff—do not call, email, text, or meet with them, as anything you say may be used against your business at trial
• Contact a Florida business litigation attorney immediately to evaluate the claims, identify defenses, and ensure timely response filing
• Notify your business insurance carrier within 24-48 hours if the claims may be covered under general liability, errors and omissions, or other policies
• Preserve all documents, emails, texts, contracts, and records related to the lawsuit by implementing a litigation hold to prevent destruction or alteration of evidence
• You usually have just 20 days from service to file a formal response in Florida courts; missing this deadline results in a default judgment

Do I Need a Lawyer If My Business Gets Sued in Florida?

Yes. Business entities, corporations, LLCs, and partnerships cannot represent themselves in Florida court. Florida law requires businesses to be represented by licensed attorneys in litigation. 

Only sole proprietorships operating under the owner’s personal name may proceed pro se (self-represented), and small claims may be represented by a corporate officer. But even then, it is rarely advisable.

Why Hiring a Business Litigation Attorney Is Important

Business litigation involves procedural rules, evidentiary standards, discovery obligations, motion practice, and strategic decisions that require legal training and litigation experience. Attorneys evaluate the strength of the plaintiff’s claims, identify available defenses, assess whether counterclaims exist, and develop strategies to minimize exposure.

Attorneys also negotiate with opposing counsel, explore settlement opportunities, and protect privileged communications. Documents shared with your attorney under attorney-client privilege remain confidential and cannot be used as evidence against your business.

Timing Matters

Hiring counsel immediately after service allows time to investigate the claims, gather evidence, and prepare a comprehensive response. Waiting until days before the response deadline limits your attorney’s ability to craft strategic defenses and may force rushed filings that miss critical arguments.

Should I Contact My Insurance Company If My Business Is Sued?

Yes, immediately. Most business insurance policies, such as general liability, professional liability (errors and omissions), employment practices liability, and directors and officers liability, include duty-to-defend provisions. This means the insurer pays for your legal defense if the claims fall within policy coverage.

How Insurance Coverage Works

Review your insurance policies to determine whether coverage may apply. Common policies that respond to business lawsuits include:

• General liability insurance: Covers bodily injury, property damage, and personal injury (defamation, slander) claims arising from business operations. If a customer claims they were injured on your premises or your business damaged their property, general liability may cover defense costs and damages.
• Professional liability (E&O) insurance: Covers claims of professional negligence, errors, or omissions in the services your business provides. If a client claims your work was defective or caused financial loss, professional liability may respond.
• Employment practices liability insurance (EPLI): Covers claims by employees or former employees alleging discrimination, harassment, wrongful termination, or retaliation.
• Commercial umbrella insurance: Provides additional coverage above underlying liability policies when damages exceed primary policy limits.

Notify Quickly

Insurance policies require prompt notice of claims or potential claims. Failing to notify the carrier within the time frame specified in the policy may void coverage. Most policies require notice “as soon as practicable” or within a certain number of days.

When notifying your insurer, provide:

• A copy of the complaint
• The date you were served
• A brief summary of the facts underlying the lawsuit
• Information about your business operations relevant to the claim

The insurer will assign a claims adjuster who evaluates coverage, may appoint defense counsel, and determines whether the claims trigger a duty to defend.

Coverage Disputes

Insurers sometimes deny coverage or assert the claims fall outside policy terms. If your insurer denies coverage, consult a business litigation attorney immediately. Coverage disputes are separate from the underlying lawsuit, and you may need to defend the lawsuit while simultaneously challenging the insurer’s denial.

What Happens If I Ignore a Lawsuit Against My Business?

Default judgment. If you do not file a timely response, the plaintiff may request a default judgment from the court. The judge reviews the complaint, assumes all allegations are true, and enters judgment for the plaintiff.

Consequences of Default Judgment

Default judgments allow plaintiffs to:

• Obtain monetary judgments for the full amount claimed plus interest
• Record liens against business property and personal assets if you personally guaranteed business obligations
• Garnish bank accounts and seize assets
• Damage your business credit and reputation

Default judgments are difficult to set aside. Florida Rule of Civil Procedure 1.540 allows courts to vacate defaults only for good cause, like excusable neglect, fraud, or newly discovered evidence.

Even if you believe the lawsuit is frivolous, meritless, or filed by a disgruntled customer making false claims, ignoring service results in judgment against your business. You lose the opportunity to present defenses, challenge evidence, or negotiate settlement.

What Documents Should I Gather If My Business Is Sued?

Preserve and organize all documents related to the claims in the lawsuit. Litigation creates discovery obligations, where both sides exchange documents, answer written questions, and undergo depositions. The documents you preserve now become evidence supporting your defenses or undermining the plaintiff’s case.

Implementing a Litigation Hold

A litigation hold is a directive to preserve all documents, communications, and data relevant to the lawsuit. Once your business is on notice of litigation, you have a legal duty to preserve evidence. 

Destroying, altering, or “losing” documents after service creates spoliation liability, and courts may impose sanctions, instruct juries to assume destroyed evidence was unfavorable, or dismiss your defenses entirely.

What to Preserve

Gather and preserve:

Contracts and agreements: Any written agreements, purchase orders, invoices, proposals, or terms and conditions between your business and the plaintiff.

Communications: Emails, text messages, letters, memos, and meeting notes involving the plaintiff, the transaction at issue, or the events giving rise to the lawsuit.

Financial records: Invoices, payment records, receipts, bank statements, and accounting documents showing money exchanged, services rendered, or products delivered.

Personnel files: If the lawsuit involves an employment claim, preserve the employee’s personnel file, performance reviews, disciplinary records, payroll records, and communications with or about the employee.

Policies and procedures: Employee handbooks, safety policies, training materials, and standard operating procedures relevant to the claims.

Photos and videos: Any visual documentation of the property, product, accident scene, or condition at issue in the lawsuit.

Electronic data: Preserve data on servers, hard drives, cloud storage, and mobile devices. Do not delete emails, overwrite backups, or dispose of old computers.

Instruct employees to preserve documents and communications related to the lawsuit and to avoid discussing the case or deleting files.

Can My Small Business Be Ruined by One Lawsuit?

Potentially, but not inevitably. The outcome depends on the size of the judgment, whether you have insurance coverage, the strength of your defenses, and how quickly you respond.

Financial Exposure

Uninsured judgments create serious financial strain. Judgments accrue interest, may lead to liens and asset seizure, and impact business credit. Businesses without sufficient assets or cash flow to satisfy judgments may face bankruptcy or dissolution.

Reputational Damage

Lawsuits become public record. Customers, vendors, lenders, and competitors may learn about litigation, potentially damaging business relationships and reputation.

Minimizing Risk

Hiring experienced counsel early, exploring settlement options, and asserting strong defenses minimize exposure. Many lawsuits settle before trial, and insurance coverage often eliminates out-of-pocket costs.

How a St. Petersburg Business Litigation Attorney Helps

Business litigation attorneys at Lopez Law Group manage the legal aspects of lawsuit defense from response filing through trial or settlement.

Case Evaluation and Strategy

Attorneys analyze the complaint, evaluate the strength of claims, identify defenses, and develop litigation strategy. We assess whether counterclaims against the plaintiff exist and whether third parties should be joined.

Response and Motion Practice

We draft and file answers, motions to dismiss, and other responsive pleadings that challenge the plaintiff’s claims, assert affirmative defenses, and protect your business’s procedural rights.

Discovery Management

We handle document production, draft interrogatory responses, prepare witnesses for depositions, and take depositions of the plaintiff and their witnesses. Discovery uncovers evidence supporting defenses and exposes weaknesses in the plaintiff’s case.

Settlement Negotiation

We negotiate with opposing counsel to explore settlement opportunities that resolve disputes without trial costs and risks. Many cases settle during mediation or informal negotiations.

Trial Representation

If settlement is not possible or does not serve your interests, we prepare for trial, present evidence, cross-examine witnesses, and argue your defenses before the judge or jury.

FAQ About Florida Business Lawsuits

Can We Settle a Business Lawsuit Out of Court?

Yes. Most business lawsuits settle before trial through negotiation, mediation, or structured settlement agreements. Settlement avoids trial costs, provides certainty, and may include confidentiality provisions protecting business reputation.

How Long Do Business Lawsuits Usually Take in Florida?

Simple cases may resolve in months. Complex commercial litigation often takes one to three years, particularly if the case involves extensive discovery, multiple motions, or trial. Settlement discussions may shorten timelines significantly.

Can I Talk Directly to the Person Who Sued My Business?

No. Once the plaintiff is represented by an attorney, Florida’s Rules of Professional Conduct prohibit you (or your attorney) from contacting them directly. All communications must go through their attorney.

Can the Plaintiff Freeze My Business Bank Accounts Before the Case Is Decided?

Generally not before judgment, but plaintiffs may seek pre-judgment attachments or injunctions in limited circumstances if they show that you are transferring assets, hiding money, or pose a serious flight risk. After obtaining judgment, creditors may garnish business bank accounts and seize assets to satisfy the debt.

What Happens If the Lawsuit Claims More Than My Business Assets Are Worth?

If the judgment exceeds your business assets, plaintiffs may pursue personal assets if you personally guaranteed business obligations or if they pierce the corporate veil. Insurance coverage, bankruptcy protection, or negotiated settlements may limit personal exposure.

Protect Your Business—Act Now and Call Lopez Law Group

The lawsuit sitting on your desk is not going away. Default judgments, destroyed evidence, and missed deadlines create permanent consequences that skilled defense strategies could have avoided. The faster you respond, the more options you preserve.

Lopez Law Group handles business litigation, contract disputes, and commercial claims across St. Petersburg and Pinellas County. Consultations for business litigation matters are paid.

rel=”noreferrer noopener nofollow”>CALL FOR A CASE EVALUATION