My last column ("When client dissatisfaction moves to E&O Claims," October 2009) addressed the perils of client complaints and "potential claims," the importance of carefully evaluating them and the considerations of when to report the complaints to your E&O carrier. Every once in awhile, however, it isn't just the client who knocks with a complaint. What if you open the door and see a process server or sheriff's deputy standing before you? That "potential" claim has become real. Now what?

t. Most agents take it personally, while others view it strictly as a matter of business. Whenever I represent a client who has been sued for the first time and is justifiably upset, I tell him there are two kinds of insurance agents: those who have been sued, and those who haven't been sued–yet. This statement is cold comfort indeed. We live in a litigious society, and it's why we carry professional liability insurance.

Still, it is difficult to think rationally or objectively when a plaintiff questions your professional integrity and ability. Your first reaction will probably be to read–and re-read–the complaint, perhaps shaking with anger and cursing your client while you do. Once this initial fury subsides, you must immediately forward the suit papers to your E&O carrier. Time is of the essence, because the moment you are served the clock starts ticking for you to file an answer or raise certain initial legal defenses. The faster your E&O carrier receives the suit papers, the faster it can assign defense counsel (assuming your E&O policy doesn't afford you the right to unilaterally select your own attorney), and the more time your attorney will have to preliminarily evaluate the claim and formulate a strategy to proceed. You should generally expect to be contacted by your defense attorney within a week or so.