A demand letter is the primary pre-litigation communication tool used by PI attorneys to initiate settlement negotiations with insurance companies. The letter presents the client's version of events, describes injuries and medical treatment, summarizes liability evidence, documents economic and non-economic damages, and makes a specific settlement demand. A well-crafted demand letter is crucial because insurance adjusters use it to evaluate case value and determine whether to negotiate, deny, or counter. Demand letters should be comprehensive enough to demonstrate case strength while leaving room for negotiation. They typically include a response deadline (often 30-60 days). Premature or poorly-supported demands can result in lowball counteroffers or immediate denials.
← Glossary
Demand Letter
Formal written request sent to an insurer outlining the client's injuries, liability evidence, and requested settlement amount before litigation.
Related terms
- Settlement Negotiation — Back-and-forth discussions between plaintiff and defendant/insurer to reach a mutually acceptable resolution without trial.
- Insurance Adjuster — Insurance company representative who investigates claims, evaluates liability and damages, and makes settlement recommendations or offers.