A lawsuit is an occupational hazard of being in business. Customers will file, as well as competitors and employees to get their pound of flesh. Sometimes legal action is justified, and others it’s a ploy to take hold of your market share. There is a lot to learn from Kissmetrics on this front after their year-long battle in the courts.
Being served papers seems like the worst thing in the world. It’s going to be a long, costly process regarding money, time and reputation. Plus, if you lose, well you don’t even want to contemplate defeat.
However, every cloud has a silver lining and fighting a lawsuit is no different. Here are four things you will learn.
1. Insurance Is Essential
Startups are frugal and want to save cash. It isn’t about cutting corners but slashing expenses where possible. As an investment, we know that there are other places you could put your capital which have a higher ROI and aid growth and expansion.
Insurance can be expensive and doesn’t pay out often. Imagine you aren’t covered – the papers land on the desk and you’re up a proverbial creek without a paddle.
Now image you are covered – this is when the people at insurance companies produce their worth and produce that ROI for you. All those legal costs covered because they are the ones that will be picking up the bill.
Considering settlements can cost millions of dollars, you’re going to need some backup.
2. But They Won’t Always Play Ball
Some firms are fair and just and others are cowboys. All of them are businesses looking to turn a profit. It is in their interest not to payout because the company can keep the cash. Then, there are bonuses all around while deserving people scrimp and save to survive.
Unfortunately, it’s a way of life in 2018. Intelligent people will learn from Darras Law here and fight back. No one wants to lose out yet the prospect of proving them wrong is difficult. It’s for this reason that a solicitor is integral to your business. With their experience, they prevent insurance companies from taking advantage.
3. Patience Is The Key
To find a middle ground, all parties involved will try to come to a compromise. It’s a smart move because it’s a money and time-saver. The problem is that mediation doesn’t save much of either. At least, not what you would expect when the first meeting is booked. Lawyers will attempt to minimise their expenses by “going slow” while clauses may stop the simplest option dead in its tracks.
The chances are nothing will get done for quite a while, so stay calm and carry on.
Are you willing to risk it?