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Also in this issue of GC New York, “ When Insolvency Looms: Knowing Where You Stand.” Read this and more on topics of interest to in-house counsel at www.GCNewYork.com.

Pre-litigation costs—costs incurred to defend a claim that a company knows will be made against it but prior to the point that its insurer assumes the defense—often are significant and unavoidable. Events that result in claims typically happen without warning, and when a tragedy strikes, companies must respond immediately. Depending upon the situation, civil and criminal procedural rules may impose immediate duties to preserve evidence, adverse publicity may taint the jury pool, and potential plaintiffs will ride the proverbial coattails of governmental investigations to develop cases.

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