How a Cease and Desist Letter Can Mitigate Your Business’ Risk of Loss

minimize risk in a cease and desist letter

When someone is making untrue and damaging statements about your company, you can take legal action. The first step in addressing this type of activity is sending a cease and desist letter, which is a formal notice advising the party responsible that continuing to make those statements will result in a claim for damages.

Slander and Libel Defined

Public statements that are untrue and defamatory are referred to as slander and written statements are libel. Typically, statements expressing an opinion don’t amount to slander. However, false statements that are expressed as fact but are false are legally actionable.

The Components of a Cease and Desist Letter

You can minimize risk in a cease and desist letter. It is a very effective deterrent to libel and slander because it provides people with an advisory that compels them to consider the legal repercussions of their conduct. The letter should describe the inaccurate and defamatory statements in detail; it should include information about when they occurred and to whom they were made. Most importantly, it must advise a party that legal action will be imminent if the false statements continue.

Slander and libel can cause a business to experience serious damages. An experienced insurer and legal counsel can help you prepare an effective cease and desist that can significantly reduce your exposure to damages.