I will sue you! What does it mean if a person is being sued? A lawsuit is a claim or cause of action instituted or pending between private persons or entities in a court of law. In order to properly commence a lawsuit, a complaint must be filed with the court and the defendant must be served or given a copy of the summons and complaint.

The insurance answer is you buy insurance to defend you in a lawsuit. If your specific policy is triggered then your right to defense will start. If your policy does not trigger, the cause of the lawsuit is not within the scope of the policy, then you are not protected by insurance.

An insurance company will often investigate a claim "without prejudice". Liability has not been established and there is no commitment for coverage.

Good risk management is the best defense from a lawsuit. When it does happen though it is a comfort to have a team of lawyers ready to defend you and if there is an award against you, it will not cause you financial devestation.