Demand Letter

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.

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

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.

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.