By: Gretchen Sayers, Esq. and Roxanne Westfall – Media/Professional Insurance
“Why did they sue us? We didn’t do anything wrong!” These are often the first words out of a policyholder’s mouth after a client files a lawsuit against their firm. As many innocent insureds eventually find out, doing everything right does not necessarily shield a company from being sued. If a company ultimately prevails in court, it can cost tens of thousands of dollars to successfully defend against even the most baseless of allegations. While it is virtually impossible to insulate any business completely from litigation, there are practical steps a Technology Service Provider (TSP) in particular can take to reduce the likelihood that a dissatisfied or financially troubled client will file suit. At the very least, these steps will certainly prove helpful in the defense of a suit if litigation cannot be avoided.
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