Almost every business will, at some time in its existence, be sued. The suits may be false and fraudulent, a suit where there is a possibility you will be found liable to the plaintiff or a suit where you owe no liability to anyone.  Every insurer will face a suit for breach of contract or for causing damage to another person or entity as a result of negligent or intentional conduct. Every business, therefore, needs a proactive effort at risk management to avoid or limit litigation against it.

As contingent or unknown losses cannot be predicted by an individual business, it must manage the risk of loss by contingent events that will bring about suits seeking tort damages.

This course explains that risk management is the process of identification, analysis and either acceptance or mitigation of uncertainty in business.  Essentially, risk management occurs anytime a business analyzes and attempts to quantify the potential for losses in business. The curse also explains how to deal with a lawsuit that is filed naming the business as a defendant, including how to obtain insurance before the suit and how to deal with your insurer after a suit is filed.

We also discuss how to retain and control the work of defense counsel if the business is sued for a tort or breach of contract but not insured and explain reasons why to settle or not settle a lawsuit.

Learning Objectives
  • Explore the concept of risk management.
  • Explore the methods of dealing with an insurance company after a claim or suit is made against the business.
  • Identify each coverage available to your business to protect against tort actions.
  • Identify how to deal with a simple claim where suit is filed against the business.
  • Discover how insurers negotiate with tortfeasors.
  • Discover how to manage your attorneys.
Last updated/reviewed: August 14, 2023
8 Reviews (42 ratings)


Anonymous Author
This course is largely about insurance and how it operates to defend the insured. The information is good but not the focus was not quite what I expected.

Anonymous Author
Good content but it could have been presetented in half the time. Very painful to get through to the end. S L O W .

Member's Profile
I now feel comfortable selling the need for E&O insurance to by company. The explains exactly how it will benefit us.

Member's Profile
Excellent discussion of the rights and responsibilities of all parties to a law suit, including the insurer.

Member's Profile
Barry Zalma is very dull and boring. He even seems un-interested in the lecture he is giving.

Anonymous Author
Well done course. Would've gone over risk management, document retention, etc more.

Anonymous Author
A bit slow and repetitive. Probably should have been 1 or 1.5 hours instead of 2.

Anonymous Author
Good overview and detail of the role of the insurance policy in defending suits

Course Complexity: Intermediate

Prerequisites: Experience presenting claims on behalf of the company to an insurer; and any officer of a business required to deal with and manage legal services.

Advanced Preparation: None

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
Importance of Insurance
  What is Insurance8:34
  The Need for Insurance7:00
Good Faith and Fair Dealing
  The Common Auto Accident 12:13
  The Covenant of Good Faith and Fair Dealing10:17
  The Importance the Tort of Bad Faith to Every Business13:27
Tort Suit
  Refuse to Settle a Tort Suit5:35
  Why Incur Millions for Defense 13:49
  How to Manage Independent Council 10:09
  What to do when there is No Insurance Coverage15:54
Continuous Play
  You've been sued - Now What?1:48:26
  Slides: You've been sued - Now What?PDF
  You've been sued - Now What? Glossary/IndexPDF