Insurance and indemnity first
Business insurance, including general liability, D&O, professional liability, and cyber policies, may cover defense costs for some claims, but most policies require prompt notice and many give the insurer rights over the defense and any settlement. Late notice can put coverage at risk, so policies should be checked as soon as a claim or demand arrives, not after the case develops. Contracts with vendors, customers, or the seller of an acquired business may also give you indemnity rights, usually with notice requirements of their own. If an insurer reserves its rights or denies coverage, that response deserves its own review.
Communications and records inside the company
Internal emails and chat messages about a pending case can become evidence, and messages that do not seek legal advice are generally not privileged just because a lawyer is copied. Limit discussion of the case to the people who need to be involved, route substantive questions through counsel, and avoid speculating in writing. The litigation hold notice should reach every custodian with relevant information and be refreshed as people join or leave. Designating one internal contact to keep documents, schedules, and decisions organized for the legal team makes the whole effort cheaper.
Budgets, reporting, and authority to settle
Commercial litigation matters can run for a long time, so a phased budget tied to stages of the case helps management plan and compare options. Public companies and those with audited financial statements may need to assess whether a case calls for an accrual or disclosure under accounting standards, and auditors will usually ask counsel for a letter about pending matters. Decide early who can approve a settlement and at what level, so an offer made at mediation can be answered on the day. We agree on a reporting rhythm with the company, such as an update after each major ruling, and adjust it to what the board expects. A first meeting sets the internal team, the budget assumptions, and the decision points ahead.
