Demand letter

What is a demand letter?

A demand letter is a written presentation of a claim to the insurer, setting out why their insured is responsible, what the injury involved and what figure would resolve it.

It is a package rather than a letter in most serious cases, running to substantial supporting documentation.

It is the point at which the claim moves from a file the adjuster is monitoring to a decision the carrier must make.

Most claims that settle without litigation settle from this document.

It is also the first time the carrier sees the claim presented as a whole rather than as a stream of individual bills.

What does it contain?

A complete demand leaves the adjuster nothing to request.

Anything the adjuster has to request afterward delays the response.

• A factual account of the incident with supporting evidence
• The legal basis for liability including any regulatory violation
• Complete medical records and an itemization of bills
• Documentation of wage loss and future care needs
• A description of how the injury affected daily life
• The settlement figure sought and a response deadline

When should it be sent?

Generally after reaching maximum medical improvement, since the demand should reflect the complete picture rather than treatment to date.

Sending it early guarantees undervaluation, because the carrier evaluates what is documented rather than what is anticipated.

The statute of limitations can force earlier action, though filing suit and continuing to negotiate are compatible.

What makes a demand effective?

Documentation rather than adjectives. A demand asserting severe pain persuades less than one showing a documented herniation, confirmed radiculopathy and a permanency opinion.

Anticipating the defense arguments matters too, since addressing a prior injury or a treatment gap directly is stronger than leaving the adjuster to raise it.

A policy limits demand carries particular weight, since refusing a reasonable one can expose the carrier to a bad faith claim if a verdict exceeds the limit.

The response to a well documented demand is frequently the clearest signal of whether a case will settle or be litigated.

Common questions

How long does the insurer take to respond?

Response times vary and a deadline is usually set in the demand. A first response is frequently a counteroffer well below the figure sought.

Can I write my own demand letter?

You can, though presenting the medical and legal basis effectively is what determines the response. The documentation matters more than the letter itself.

What if they ignore it?

Filing suit is the next step, and the claim continues to be negotiated during litigation.