What Is a Demand Letter?
A demand letter is the first formal written request for a specific settlement amount, supported by evidence of what happened, what it cost, and why the other side is responsible.
Short answer
A demand letter is a written request to an insurer or defendant asking for a specific settlement amount, supported by evidence of the claim. It typically opens the formal negotiation phase of an injury claim.
What a good demand letter contains
A complete demand letter generally includes:
- A clear narrative of what happened
- A liability argument — why the other side is at fault
- Description of injuries and treatment with supporting records
- Itemized medical bills and wage-loss documentation
- Description of non-economic losses
- A specific dollar demand
- A deadline for a response
- Supporting exhibits attached
Why timing matters
Demand letters typically go out after medical treatment has stabilized, because it's only then that the total cost of the injury can be documented. Sending a demand too early usually results in a low offer that doesn't reflect long-term care needs.
What usually happens next
The insurer reviews the demand, usually within 30–90 days, and responds with an offer, a counter, or a denial. The demand is the top of the negotiation; the response is rarely the final number. Back-and-forth follows.
Key Takeaways
- 01A demand letter is the first formal written settlement request.
- 02Send it after medical treatment has stabilized to capture the full claim.
- 03Good demand letters include narrative, liability argument, damages, and exhibits.
- 04Response typically comes in 30–90 days; negotiation follows.
General information only. This page explains common concepts in plain language. It is not legal advice and does not create an attorney-client relationship. Laws vary by state and change over time. For any specific situation, consult a licensed attorney in your jurisdiction.