ContractsCounsel Logo

Demand Letter to Insurance Company

Clients Rate Lawyers on our Platform 4.9/5 Stars
based on 9,733 reviews
No Upfront Payment Required, Pay Only If You Hire.
Home Types of Contracts Demand Letter to Insurance Company

Jump to Section

A demand letter to an insurance company is a documented communication notice sent by a person, organization, or lawful agent to an insurance service provider. In addition, the primary objective of the demand letter is to formally demand settlement or benefits for damage, loss, or injury covered by the insurance policy. This letter typically includes specific details about the incident, the magnitude of the loss, and any appropriate supporting documentation, such as repair estimates, medical bills, or actual photographs. This blog post will discuss the fundamental elements of sending a demand letter to an insurance company.

Steps to Structure a Demand Letter to an Insurance Company

Structuring a demand letter to an insurance company comprises various steps that are as follows:

  1. Write Details for the Header. The heading section includes the following:
    • Personal Information: Add full name, address, contact details, and email address at the top of the letter. These details help the insurance company identify and contact the requisitioner.
    • Date: Include the date the person is drafting the demand letter. It is necessary to establish a timeline for the claim settlement.
    • Insurance Information: Provide the policy details, including the policy number and coverage information. It helps the insurance company locate files quickly.
  2. Include a Salutation. Use a formal salutation to address the insurance adjuster or relevant party. If the petitioner knows the adjuster's name, use it else; a general salutation like "To Whom It May Concern" is acceptable.
  3. Present the Introduction. Open the letter with a concise introduction that clearly states the purpose of the letter. Mention the incident date and a brief overview of what happened. Avoid unnecessary details at this stage; save them for the body of the letter.
    • Body of the Letter: It is the core of any demand letter and should be organized logically and coherently. The body of the demand letter comprises the below structure:
    • Incident Description: Draft a comprehensive history of the incident, including the time, date, and location. Summarize the series of events leading to the mishap. Be accurate and stick to the facts.
    • Liability and Fault: Explain why the other party is at fault. Reference any relevant laws or regulations that support the claim. Include evidence such as photos, witness statements, or police reports.
    • Damages Incurred: List and quantify the damages the person suffered. It may include medical expenses, property damage, lost wages, and non-economic damages like pain and suffering. Attach supporting documentation, such as medical bills, repair estimates, and receipts.
    • Medical Treatment: Detail the medical treatment the person received, including hospital stays, surgeries, medications, and rehabilitation. Highlight the healthcare providers involved and any ongoing treatment.
    • Lost Income: If the incident caused the individual to miss work, specify the dates and provide evidence of the lost income. It can include compensation details, a letter from the organization, or tax returns.
    • Pain and Suffering: If applicable, articulate the physical and emotional pain the person experienced due to the incident. Use specific examples and describe how the injuries have affected their daily life.
  4. Outline the Legal Basis for the Claim. Briefly summarize the lawful basis for the insurance claim. Moreover, it is rational to refer to any applicable laws or legal regulations that substantiate the claim and add a layer of legality to the insurance claim.
  5. Specify the Settlement Amount. Clearly state the amount of compensation the individuals are seeking. It should be a well-calculated figure based on the documented damages. Provide a breakdown of how the applicant arrived at this amount to justify the request.
  6. Conclude with a Closing. Express the expectations for a timely response. Include a specific deadline for the insurance company to respond to the specified demand letter. A standard timeframe is 2 to 3 weeks. Conclude with a polite closing (e.g., "Sincerely" or "Best regards").

Benefits of a Demand Letter to an Insurance Company

A demand letter functions as a standard communication to the insurance service provider, summarizing the details of the incident, the legal injuries incurred, and the compensation required. It is usually the primary step in the negotiation process and can be vital in establishing the claim's legitimacy. The key advantages of a demand letter are as follows:

  • Establishing Clarity: A demand letter articulates the claim's details clearly. It outlines the facts of the incident, establishes liability, and delineates the damages suffered by the claimant. This clarity is important for both parties to understand the basis of the claim and the reasons behind the requested compensation.
  • Formalizing Communication: By putting the claim in writing, a demand letter formalizes the communication process. It ensures that important details are documented and records the claimant's position. This formality often prompts a more serious consideration of the claim by the insurance company.
  • Providing a Basis for Negotiation: The demand letter sets the stage for negotiation between the claimant and the insurance company. It presents the claimant's case and offers an opportunity for the insurer to respond with their perspective. Negotiation can lead to a fair settlement that avoids the need for legal action.
  • Demonstrating Serious Intent: Sending a demand letter indicates to the insurance company that the claimant is serious about pursuing their claim. It suggests a willingness to take further legal action if a reasonable resolution is not achieved through negotiation. This seriousness often motivates insurers to engage in a meaningful dialog to avoid potential legal consequences.
  • Meeting Legal Requirements: In some cases, specific insurance policies or state laws may require a claimant to submit a demand letter before pursuing legal action. Meeting these requirements is essential to maintaining the claimant's legal standing and ensuring a smooth claims process.
  • Documenting the Claim: A demand letter is a comprehensive document that encapsulates the details of the claim. This documentation can be invaluable if the matter escalates to a legal dispute. A well-drafted demand letter strengthens the claimant's position by providing a clear record of the incident and the associated damages.
Meet some lawyers on our platform

Richard N.

111 projects on CC
View Profile

Matt B.

6 projects on CC
View Profile

Ryenne S.

549 projects on CC
View Profile

Faryal A.

152 projects on CC
View Profile

Pitfalls to Avoid When Drafting a Demand Letter to an Insurance Company

Mentioned below are common pitfalls to avoid while preparing a demand letter to an insurance company:

  • False Statements or Exaggeration: Stick to the facts and avoid overstating or making false statements. A demand letter should accurately represent the incident and the incurred damages.
  • Ambiguity in Settlement Amount: Clearly state the compensation required and provide a breakdown of how the person arrived at that figure. Vague or ambiguous demands can hinder the negotiation process.
  • Emotional Language: While it's essential to convey the impact of the incident, avoid overly emotional language that may undermine the professionalism of the demand letter. Stick to a factual and objective tone.
  • Overlooking Deadline for Filing a Lawsuit: The applicant must file a lawsuit if negotiations break. Be aware of the law of limitations for the demand letter and ensure they follow all the deadlines for taking legal action.

Key Terms for a Demand Letter to an Insurance Company

  • Insurance Claim: A formal request to an insurance company for coverage or compensation for a covered loss or policy event.
  • Liability: Legal responsibility for an action or event, often a vital factor in determining insurance coverage and compensation.
  • Incident Details: Comprehensive information about the event or circumstance that led to the insurance claim, including date, time, location, and a narrative description.
  • Adjuster: A representative of the insurance company responsible for assessing the extent of damages, determining liability, and negotiating settlements with the claimant.
  • Insurable Interest: The financial or other interest an individual or entity must have in the subject matter of the insurance policy for coverage to be valid.
  • Reservation of Rights Letter: A formal communication from the insurance company to the policyholder explicitly stating the insurer's intention to investigate a claim without waiving any rights under the policy.

Final Thoughts on a Demand Letter to an Insurance Company

Drafting a demand letter to an insurance company is vital in the claims procedure. Following a detailed approach and incorporating essential details improves the odds of a favorable outcome. Nevertheless, stay organized, offer supporting documentation, and maintain a professional tone throughout the demand letter. While a well-written demand letter is a vital tool, it's necessary to be prepared for the possibility of further negotiations or legal action if a consensus cannot be reached.

If you want free pricing proposals from vetted lawyers that are 60% less than typical law firms, Click here to get started. By comparing multiple proposals for free, you can save the time and stress of finding a quality lawyer for your business needs.

How ContractsCounsel Works
Hiring a lawyer on ContractsCounsel is easy, transparent and affordable.
1. Post a Free Project
Complete our 4-step process to provide info on what you need done.
2. Get Bids to Review
Receive flat-fee bids from lawyers in our marketplace to compare.
3. Start Your Project
Securely pay to start working with the lawyer you select.

Meet some of our Demand Letter to Insurance Company Lawyers

Benjamin W. on ContractsCounsel
View Benjamin
5.0 (31)
Member Since:
March 11, 2021

Benjamin W.

Founder
Free Consultation
Los Angeles, CA
9 Yrs Experience
Licensed in CA
UCLA School of Law

I am a California-barred attorney specializing in business contracting needs. My areas of expertise include contract law, corporate formation, employment law, including independent contractor compliance, regulatory compliance and licensing, and general corporate law. I truly enjoy getting to know my clients, whether they are big businesses, small start-ups looking to launch, or individuals needing legal guidance. Some of my recent projects include: -drafting business purchase and sale agreements -drafting independent contractor agreements -creating influencer agreements -creating compliance policies and procedures for businesses in highly regulated industries -drafting service contracts -advising on CA legality of hiring gig workers including effects of Prop 22 and AB5 -forming LLCs -drafting terms of service and privacy policies -reviewing employment contracts I received my JD from UCLA School of Law and have been practicing for over five years in this area. I’m an avid reader and writer and believe those skills have served me well in my practice. I also complete continuing education courses regularly to ensure I am up-to-date on best practices for my clients. I pride myself on providing useful and accurate legal advice without complex and confusing jargon. I look forward to learning about your specific needs and helping you to accomplish your goals. Please reach out to learn more about my process and see if we are a good fit!

Rebecca S. on ContractsCounsel
View Rebecca
5.0 (2)
Member Since:
April 6, 2021

Rebecca S.

Attorney/Owner
Free Consultation
San Diego, CA
13 Yrs Experience
Licensed in CA, DC, VA
New England School of Law

I absolutely love helping my clients buy their first home, sell their starters, upgrade to their next big adventure, or transition to their next phase of life. The confidence my clients have going into a transaction and through the whole process is one of the most rewarding aspects of practicing this type of law. My very first class in law school was property law, and let me tell you, this was like nothing I’d ever experienced. I remember vividly cracking open that big red book and staring at the pages not having the faintest idea what I was actually reading. Despite those initial scary moments, I grew to love property law. My obsession with real estate law was solidified when I was working in Virginia at a law firm outside DC. I ran the settlement (escrow) department and learned the ins and outs of transactions and the unique needs of the parties. My husband and I bought our first home in Virginia in 2012 and despite being an attorney, there was so much we didn’t know, especially when it came to our HOA and our mortgage. Our real estate agent was a wonderful resource for finding our home and negotiating some of the key terms, but there was something missing in the process. I’ve spent the last 10 years helping those who were in the same situation we were in better understand the process.

Richard G. on ContractsCounsel
View Richard
4.7 (1)
Member Since:
April 21, 2021

Richard G.

Attorney
Free Consultation
Massachusetts
3 Yrs Experience
Licensed in MA
Massachusetts School of Law

Attorney Gaudet has worked in the healthcare and property management business sectors for many years. As an attorney, contract drafting, review, and negotiation has always been an area of great focus and interest. Attorney Gaudet currently works in Massachusetts real estate law, business and corporate law, and bankruptcy law.

Ema T. on ContractsCounsel
View Ema
Member Since:
March 12, 2021

Ema T.

Contract and IP Attorney
Free Consultation
New York, NY
6 Yrs Experience
Licensed in NY
Chicago Kent

I am a NY licensed attorney experienced in business contracts, agreements, waivers and more, corporate law, and trademark registration. My office is a sole member Law firm therefore, I Take pride in giving every client my direct attention and focus. I focus on getting the job done fast while maintaining high standards.

David B. on ContractsCounsel
View David
Member Since:
April 1, 2021

David B.

Attorney
Free Consultation
Trussville, Alabama
28 Yrs Experience
Licensed in AL
Birmingham School of Law

A twenty-five year attorney and certified mediator native to the Birmingham, Alabama area.

Samantha B. on ContractsCounsel
View Samantha
Member Since:
April 15, 2021

Samantha B.

Principal and Founder
Free Consultation
Chicago
10 Yrs Experience
Licensed in FL, IL
Ave Maria School of Law

Samantha has focused her career on developing and implementing customized compliance programs for SEC, CFTC, and FINRA regulated organizations. She has worked with over 100 investment advisers, alternative asset managers (private equity funds, hedge funds, real estate funds, venture capital funds, etc.), and broker-dealers, with assets under management ranging from several hundred million to several billion dollars. Samantha has held roles such as Chief Compliance Officer and Interim Chief Compliance Officer for SEC-registered investment advisory firms, “Of Counsel” for law firms, and has worked for various securities compliance consulting firms. Samantha founded Coast to Coast Compliance to make a meaningful impact on clients’ businesses overall, by enhancing or otherwise creating an exceptional and customized compliance program and cultivating a strong culture of compliance. Coast to Coast Compliance provides proactive, comprehensive, and independent compliance solutions, focusing primarily on project-based deliverables and various ongoing compliance pain points for investment advisers, broker-dealers, and other financial services firms.

Pritesh P. on ContractsCounsel
View Pritesh
Member Since:
April 19, 2021

Find the best lawyer for your project

Browse Lawyers Now

How It Works

Post Your Project

Get Free Bids to Compare

Hire Your Lawyer

Demand Letter to Insurance Company lawyers by city
See All Demand Letter to Insurance Company Lawyers
related contracts
See More Contracts
other helpful articles

Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.

View Trustpilot Review

Contracts Counsel was incredibly helpful and easy to use. I submitted a project for a lawyer's help within a day I had received over 6 proposals from qualified lawyers. I submitted a bid that works best for my business and we went forward with the project.

View Trustpilot Review

I never knew how difficult it was to obtain representation or a lawyer, and ContractsCounsel was EXACTLY the type of service I was hoping for when I was in a pinch. Working with their service was efficient, effective and made me feel in control. Thank you so much and should I ever need attorney services down the road, I'll certainly be a repeat customer.

View Trustpilot Review

I got 5 bids within 24h of posting my project. I choose the person who provided the most detailed and relevant intro letter, highlighting their experience relevant to my project. I am very satisfied with the outcome and quality of the two agreements that were produced, they actually far exceed my expectations.

View Trustpilot Review

How It Works

Post Your Project

Get Free Bids to Compare

Hire Your Lawyer

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call

Find lawyers and attorneys by city