When you’ve been injured because of someone else’s negligence, going through the complicated insurance claims process can be frustrating and overwhelming. One of the main parts of dealing with insurance companies is writing demand letters. A demand letter is a formal request for compensation and will set the tone for negotiations.
Understanding an insurance demand letter and how to handle the process is critical to ensuring you receive compensation for your injuries.
What is a Demand Letter?
A demand letter is a formal written communication you send to the insurance company with the details of your claim and request for compensation. It’s the first step in compensation negotiations. It’s important because it sets the tone for the rest of the settlement process and provides evidence of your losses, injuries, and the amount you seek.
When you send a demand letter, you’re being proactive about your claim and showing that you’re serious about pursuing a fair settlement. This letter will kickstart the negotiation process, and if litigation doesn’t work, it will set the stage for a potential lawsuit.
Key Components of a Personal Injury Demand Letter
Knowing the key components of a demand letter is crucial if you want to ensure the effectiveness of your case.
Clear Identification of Parties
When writing your demand letter, you need to identify all relevant parties. The letter should include:
- Your full name and contact information
- The name and contact information of the insurance company you’re sending the letter to
- The name of the policyholder if it’s different from yourself
- Claim or policy numbers associated with your case
When you provide accurate information upfront, you reduce the chance of miscommunication or delays with your claim later.
Detailed Summary of the Incident
Next, you must provide concise information about the accident that led to your injuries. Things you’ll want to include in this section of your demand letter include:
- The date, time, and location of the accident or incident
- A straightforward description of what led up to and caused the incident
- An explanation of why the policyholder is responsible for your injuries
- A detailed account of all the injuries incurred
- An overview of how the injuries have changed and impacted your daily life
When writing this section, do your best to leave emotions out of it and stick to the facts of the case. You want to present an objective account of the incident that shows how the other person is liable for your injuries.
Medical Records and Documentation
Ensure you include all relevant medical records and documentation in your demand letter. This evidence will support your claim and justify why you’re asking for the settlement amount you’re requesting. Include supporting documents like:
- Medical bills and receipts for any health and medical-related expenses
- Hospital and doctor’s records that detail your injuries and any treatment you’ve been receiving and will need in the future
- Diagnostic test results proving the severity of your injuries
- Physical therapy records
- Prescriptions and receipts for all medications and medical equipment
- Any other medical documentation that you can think of that backs up your claim
Organize these documents chronologically and briefly explain each so the insurance company can easily see how they support your claim. These records will help the insurance adjuster understand the full scope of your injuries and the medical care you’ve needed and will need.
Calculation of Damages
After outlining all your medical treatment with hospital records as evidence, calculate the damages you’re seeking in your settlement demand letter. This compensatory damage must be a breakdown of all the losses and costs associated with your injury. You’ll want to include things such as:
- Lost wages and loss of earning capacity
- Medical expenses for current and future care
- Emotional distress [1]
- Pain and suffering
- Property damage (if applicable)
- Loss of enjoyment of life
For each damage you seek, provide a clear and specific dollar amount that you feel is fair and how you came up with that amount. Be prepared to justify these amounts with logical reasoning and supporting documentation.
Policy Limits
If you know of any limits for the insurance coverage in question, it’s good to mention this in your policy limit demand letter. State that you know the policy limitations, but avoid mentioning any specific amount unless you’re 100% certain. When you say this, it shows that you’re knowledgeable and helps set realistic expectations during negotiations.
Demand for Settlement
Now that you’ve outlined all the injuries and damages you seek, you’ll need to forcefully and clearly demand a settlement. You need to make sure that your total is specific and reflects the injuries sustained, the impact it’s had on your life, and matches the amount mentioned in a previous section of your demand letter.
An excellent way to phrase this in your sample demand letter is:
- “Based on the evidence presented and the impact this incident has had on my life, I demand a settlement in the amount of $X to resolve this claim.”
Deadline for Response
As you wrap up your demand letter, make sure that you set a clear deadline for when you expect a response. This timeline will create a sense of urgency for the insurance company and prevent unnecessary delays. Most people provide a 30-day deadline from the day the letter arrives.
You can choose the deadline yourself if you don’t want it to be 30 days. Ensure you’re realistic to avoid making things more difficult for yourself and the insurance company. Here’s a great way to end your demand letter with a deadline:
- “I look forward to your response to this demand within 30 days of receiving this letter. If I don’t hear from you within 30 days or by (insert specific date), I’ll assume that you’re not interested in settling outside of court, and I will proceed with further legal action.”
Tips for Writing an Effective Demand Letter
You want to be as effective as possible when it comes to demand letters. Here are some tips to make your demand letter more compelling.
Be Concise and Clear
Your demand letter has to be comprehensive, but you can still be concise and clear. Insurance adjusters deal with numerous claims daily, so providing them with a well-organized and easy-to-read letter will increase the likelihood of getting a prompt response. Here are some tips before you get started:
- Use simple language
- Use short paragraphs and bullet points where appropriate
- Avoid legal jargon unless it’s necessary
- Stick to relevant facts and avoid unnecessary details
Be Persuasive
Your demand letter is an argument for why you deserve compensation for your injuries, so you’ll want to be as persuasive as possible:
- Highlight key points that support your claim
- Present your case logically by building from the incident to the injuries to your damages
- Anticipate and address any potential counterarguments
- Use strong and active language to convey the impact the accident or incident has had on your life
Even though you want to remain professional, you can still vividly describe what happened and how it impacted you. This detail will help the insurance adjuster understand the human aspect of your demand letter and claim.
Support Your Claims
Every claim you make in your demand letter will need supporting evidence, such as:
- Attaching pictures of the injuries and/or property damage
- Referencing specific medical records and doctor’s notes when talking about your injuries
- Including witness statements or expert testimony that support your claim
- Providing exact numbers for financial losses
The more substantial the evidence you provide, the stronger your case will be when you proceed to settlement negotiations.
Be Professional
No matter how frustrated or upset you are about the accident or incident, you must remain professional in your demand letter. Do your best to keep emotions out of your demand letter because a professional approach will:
- Set a positive tone for settlement negotiations
- Increase the credibility of your insurance claim
- Demonstrate that you’re serious about reaching a fair settlement
While you need to be stern and professional, remember not to make threats or use accusatory language, as it can negatively impact the credibility of your claim.
Following Up on a Demand Letter
Once you’ve officially sent your demand letter to the insurance company, you’ll need to follow up to ensure they’ve received the letter and the claim’s being processed. Here are some things to think about:
- Contact the insurance company within one week of sending your demand letter to confirm they received it;
- If you don’t hear from the insurance company by the deadline outlined in your demand letter, follow up with an email or phone call;
- Keep a record of all communications with the insurance company, including dates, times, and the names of anyone you spoke with;
- If the insurance company fails to respond or their response is inadequate, be prepared to take further action, such as seeking mediation or filing a lawsuit.
The Role of a Personal Injury Lawyer
You can write and send the demand letter to the insurance company on your own, but hiring an experienced personal injury lawyer can help you achieve success and provide invaluable assistance.
Legal Expertise
Before sending a demand letter to the insurance company, hiring a personal injury lawyer will help guide you through the process and ensure your letter is sufficient. Whether it’s a car accident, a work-related injury, or a different incident, they provide invaluable legal expertise and help craft a convincing demand letter. They can:
- Advise you on the strength of your case and the potential outcomes
- Ensure your demand letter covers everything it needs to
- Identify the potential legal issues that could impact your claim
Negotiation Skills
Insurance companies are a business, and the insurance adjusters act accordingly. They’re used to handling claims like yours daily, making negotiating with them intimidating. That’s why having an experienced legal team can help level the playing field. They can do so by:
- Knowing how to value your claim accurately, including both economic and non-economic damages like pain and suffering
- Understanding the insurance company’s tactics and how to avoid and counter them
- Having experience negotiating similar claims and what strategies tend to be the most effective
Having the negotiation skills of personal injury attorneys on your side will likely result in a higher settlement than if you were to write the demand letter on your own.
Advocacy
A lawyer with experience in personal injury cases will be your advocate throughout settlement negotiations and trial if it comes to that. Your attorney can:
- Push back against any unfair settlement offers or delay tactics
- Handle all communications with the insurance company, which can alleviate your stress
- Represent your interests and protect your rights
- Prepare and file a lawsuit if you can’t reach a fair settlement in negotiations
Expert Legal Counsel for Your Personal Injury Claims!
Demand letters are the first step to seeking compensation and justice for an accident you’ve been in or an incident that happened. Crafting a demand letter and managing subsequent negotiations can be complex and stressful, which is why having an experienced attorney can be invaluable in navigating these challenges.
At Rosenfeld Injury Lawyers, we have extensive experience with personal injury cases. We will fight to protect your rights while seeking the maximum compensation possible for your claim. To discuss your case and learn how we can assist you, call (888)-424-5757 today or fill out our contact form for a free consultation with a skilled Chicago personal injury attorney.
References: [1] Forbes