Demand Letter
The demand letter is the document that kicks off formal settlement negotiation. It lays out the facts, the injuries, and the dollar figure being requested.
On this page
The essentials
- The demand letter formally opens settlement negotiation.
- It lays out facts, liability, injuries, damages, and a specific number.
- The demand is the top of the negotiation range, not the expected result.
- Response typically takes 30–90 days; follow-up is normal.
General U.S. background. State rules and individual facts can change the answer. Find your jurisdiction →
What a demand letter does
The demand letter moves the claim from the investigation phase into negotiation. It tells the insurer: here are the facts, here's why your insured is liable, here's what my client lost, and here's the number we're asking for. It's typically the first formal written request for a specific settlement amount.
Typical contents
A standard demand letter usually includes:
- A narrative of how the incident happened
- The liability argument — why the insurer's insured is at fault
- Description of the injuries and treatment
- Itemized medical bills and wage-loss documentation
- Description of non-economic losses — pain, disruption, limitations
- A specific demand amount
- A deadline for response
- Supporting exhibits — medical records, bills, photos, wage records
What the demand amount should be
The demand isn't the expected settlement — it's the opening of negotiation. It should be defensible (tied to real documentation) but include negotiation room. A demand that's obviously unrealistic gets treated skeptically; a demand that's too low caps the outcome.
Response timeline
Insurers typically respond within 30 to 90 days, depending on the complexity of the claim and the state's bad-faith laws. Some states require a response within a specific window. Follow-up is usually needed; adjusters are balancing many files.
Sources and review scope
This legacy reference article has not received a new claim-by-claim source or licensed-attorney review. Its content update date is not a legal verification date. Check current official sources for rules relevant to your claim. How we distinguish content dates and source checks.
Put the information to use.
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.