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Demand Letters
What is a Demand Letter?
A demand letter is a request that is sent to an insurance company or wrongdoer requesting compensation for their injuries. Before a lawsuit is filed, the demand letter attempts a settlement informally. An injured party or their attorney can write and submit the claim directly. It can mean the difference between settling a case quickly or getting ignored for months on end if a demand letter is well written.
Demand Letters
Essentially, it's like an opening statement in court. The insurance adjuster is given information about when and how the accident or incident took place, why the defendant is at fault, how severe the plaintiff's injuries were, and what damages the plaintiff has incurred and likely will incur in the future.
The Significance of a Demand Letter
Negotiating a settlement begins with a well-written letter. The injured party shows that he or she is serious about pursuing compensation, whether in a lump sum or over the course of time.
The document presents enough facts to improve the chances of settling a dispute before filing an action in small claims or superior court, without saying anything that would harm the plaintiff if the case went to trial.
Information in Demand Letter
Personal injury demand letters are not required to be lengthy, especially in small claims cases. The adjuster should, however, be able to see enough details to get a good sense of what happened. Moreover, it should outline how the plaintiff was harmed and why the defendant is liable. The following information should be included: the time, date, and location of the accident or incident, the names and contact information of the parties involved, a detailed account of what took place, the injuries the plaintiff sustained, and any supporting documents the plaintiff may have. A plaintiff's documents may include: X-rays, MRIs, or other objective tests; photos and/or videos of the accident scene; photos and/or videos depicting the plaintiff's property damage and/or injuries; and a summary of what damages the plaintiff has incurred and will incur in the future.
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Include a description of any noneconomic damages, such as scars, loss of physical function, and pain and suffering, as well as supporting documents, photos and doctor's reports, if any. Return receipt request should be included in the mailing to confirm it has been received.
Dollar Amount Specified
There should generally be no dollar amount requested by plaintiffs. At the time the letter is written, the full extent of damages, attorney's fees, and court costs is not always known.
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Furthermore, setting a maximum amount of money for the negotiation sets an upper limit that is hard to increase. For this reason, it is usually in the plaintiff's interest to let the adjuster make the first offer.
The exception is when the plaintiff is seeking the full amount payable under the policy and can prove that the amount sought is the maximum amount payable.
Demand Letter With No Attorney
An insurance adjuster is likely to receive a demand letter as one of the most important documents. It cannot be stressed enough how important it is. People often prefer to have their lawyers prepare them, even when they are in small claims court. Lawyers know what details to include in these communications since they write them frequently. Lawyers also know what not to say. By reviewing facts and accepting a case, we affirm that the claim has substance and merits legal action. Despite all the sample demands on the internet, adjusters don't take them seriously as everyone is familiar with them.