Also known as: counterclaim meaning · what is a counterclaim · counter claim
A claim a defendant files back against the party that sued them, within the same lawsuit.
A counterclaim is a claim brought by a defendant against the plaintiff in the same lawsuit, essentially suing back. In a liability claim, this matters because your liability policy's duty to defend generally covers defending you against the suit, while a counterclaim you want to bring against the other side (to recover your own losses) is usually offensive litigation that a standard liability policy does not fund. Understanding the split helps founders know what their insurer will and will not pay for when a dispute turns into a lawsuit.
A counterclaim is a claim a defendant brings back against the plaintiff within the same lawsuit. Instead of only defending, the defendant asserts their own claim against the party that sued them, and the court hears both together.
Usually not. Liability policies are built to defend you against claims made against you (the duty to defend) and to pay covered damages you owe. Bringing your own counterclaim to recover your losses is offensive litigation, which standard liability coverage typically does not fund. Ask your broker before assuming it is covered.
Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.
Last updated: July 2026.