Get instant
small business insurance quotes

Home > General Liability Insurance > News

Proper responses when dealing with a class action lawsuit


Businesses need to be increasingly aware of, and prepared for, class action lawsuits, according to a recent Reuters report.

Class action lawsuits arise when several plaintiffs have a common complaint, regardless of severity, against a company. Even if an injury or complaint is minor, having a group of angry clients can make a case huge. Furthermore, these lawsuits can become incredibly costly for companies, especially if they are without proper business insurance, as payouts to plaintiffs involved can occur.

To deal with a class action lawsuit, the report advises a business to talk with the lead plaintiff. The article states that many plaintiffs involved in class action lawsuits join because the case is convenient for them. By talking to the group's leader, hard feelings or worries can be caught early and could potentially avoid a bigger case.

In addition, businesses should find out what the core issue is with any class action lawsuit and immediately put a halt to it.

Finally, the report advises companies to prevent these cases from arising at all costs. Having open communication with employees, as well as a good relation with customers, can go a long way toward avoiding these costly cases, Reuters relays. 

WHY Business Insurance Now?

Learn why thousands of small businesses trust Business Insurance Now as their insurance agency.

Take 15 minutes to see how we can help you protect your business.

  • FREE, no-obligation quotes.
  • Complete one online application to compare multiple quotes.
  • Fast response—typically less than 24 hours on week days.
  • We are a nationwide insurance agency covering 48 states.
  • We work directly with you to evaluate your insurance options.
  • We only work with the top business insurance carriers in the country.
  • Expert, licensed insurance agents to guide you through the process.