Attorney Demand Letter to Insurance Company

Whether you’ve been in a car accident, got injured, or someone damaged your property, you will probably have to deal with an insurance company. Submitting a claim can be tedious, but it’s much worse when they don’t respond appropriately. Hiring an attorney to submit a demand letter is often the most brilliant and efficient way to handle that sort of non-response. Doing this shows that this is a serious situation, and you have no intention of quietly accepting their refusal to respond. Your attorney will lay out all the damages and give the insurance company a timeframe to make a settlement. Especially if you are hurt or your ability to work is impaired, these settlements can be life-changing. Don’t wait to have a lawyer make an official demand if you’re being ignored.

What Is an Attorney Demand Letter to an Insurance Company?

An attorney demand letter to an insurance company is something they send when you need that company to pay out on a claim or take some other action. Often the insurance companies will ask for these letters, but not always. A demand letter details what happened, who was at fault, and the damages, plus it contains an itemized list of costs incurred as a result. Additionally, your attorney may ask for enough to cover emotional damages and attorney fees, though this is optional. This letter is part of a communication or negotiation and may be used in court to show you took the proper steps to collect if necessary.

How to Write an Attorney Demand Letter

Attorney demand letters are carefully chosen, well-worded, polite but firm documents. The goal is to ensure that the recipient understands that they must respond to the demand, or the next step may be to take them to court (which typically costs more). A demand letter may instill fear of legal reprisal, but the desired outcome is to press the insurance company into action on a client’s behalf. The best-case scenario is that the company is afraid they’ll lose in court or otherwise be motivated to pay the claims immediately.

It is essential to avoid any false or misleading statements since this may eventually become evidence in court. Ensure that it is clear they need to take immediate action to remedy the situation, but always keep things professional. It’s best to send these letters on legal letterhead when possible, in which case you can skip the step where you include your information because it’s already on the page. The steps below outline everything you should include.

  • Date and your office information
  • Heading with the insurance company name and address
  • A brief statement explaining what this letter is for
  • Describe the demand and what your client expects
  • Give specifics and a chart of costs associated for which the insurance company must pay
  • Provide instructions and explain the options they have for a reasonable and satisfactory response
  • Set a specific, reasonable time limit for response and other actions as outlined in the demand
  • Include polite but clear information stating what will happen if they fail to comply (you will take them to court)
  • Decide how to send the letter. In most cases, certified mail is fine. Ask for a signed receipt of delivery. However, in some instances sending a courier service is a better choice.

After The Demand Letter Is Delivered

Once your demand letter is delivered, you may get lucky and find the insurance company agrees to your client’s demands and takes immediate action. If they fulfill their end, then no further action is necessary. Unfortunately, this isn’t always the case. Some claims may lead to negotiation, in which case the insurance company’s representative will call you. Whatever happens, communicate with your client, so they know what to expect, what to do, and what you can do for them based on how things work out.

If there is no timely response, the next step is typically to begin filing for court proceedings. Setting a date, serving any necessary paperwork, collecting evidence, and taking other steps to make sure your client gets what they are due should be a familiar process for any attorney.

Tips For Better Demand Letters

A good demand letter gets a response, but a great one can prevent court time and ensure that the client gets their settlement or other necessary actions handled so they can move on with their life. Here are a few simple, helpful tips for better demand letters.

  • Timeliness is essential. Always send demand letters promptly.
  • Always reference the pertinent claim information so there is no grey area or confusion.
  • Keep it brief and organized. Establish a timeline of events, and keep any additional information, such as receipts and bills, in the proper order if you attach them.
  • Use subheadings to clarify and organize information.
  • Make sure the insurance company can see that you and your client are clearly in the right.
  • Include every expense the client has incurred, no matter how small.
  • Sign neatly in black ink rather than stamping. Doing this looks much nicer and feels more professional.
  • Talk to your client in advance about negotiations and help them set a reasonable, firm limit to what they will accept. Taking control of this conversation is essential as clients may be emotional or uninformed about what constitutes a fair negotiation.
  • Prepare and send the letter as though going to court is inevitable, even when it’s unlikely.

Sample Demand Letter from Attorney to an Insurance Company (for Car Accident)

When the insurance company ignores you, an attorney will compose a clear, concise demand letter using a format like the one below for extensive damages and injury in a car accident.

Law Firm Name

Law Firm Address

Contact Information

Date

Recipient/Contact Name

Recipient Address

Re: Your Insured: Client Name Here

Date Of Accident: ___/___/_____

Your Claim No.: xxxxxxxxxxx

Your Policy No.: xxxxxxxxxxxxx

Our Client: Client

Our File No.:

Dear Madam or Sir,

Demand For Settlement

The undersigned attorney represents (Client Name) relative to damage and injuries sustained in (incident description such as rear-end car collision or drunk driving collision etc.) Please allow this to serve as demand for (insert specific demand(s) here)

PERTINENT FACTS

The Incident

Give a play-by-play description of the events on the date listed here

Background

Describe your client in favorable terms that show they are not likely to be at fault and that a court would probably look favorably on them. Use descriptions like hard-working and other accurate descriptors. You can also include a brief statement about the client’s goals and plans prior to the accident.

Injuries

Describe what the client felt and what they did about it, such as go to the hospital.

Medical Treatment

Injuries:

List the injuries sustained in the crash here

Treatment:

List precisely where the client went and who they saw for each treatment.

SPECIAL DAMAGES

This is where you include economic damages and offer a brief description of why these are verifiable and relevant.

Medical

Past Medical Expenses

Describe any treatments and list their costs

Future Medical Expenses

List any anticipated medical treatments

Lost Compensation/Wages and/or Impaired Earning Capacity

Explain if and when the client was not at work due to the accident. If there is enough physical damage to impair future earnings, state that and set compensation amounts.

HUMAN DAMAGES

Explain briefly why your client deserves further compensation for pain and suffering.

Pain, Suffering, and Mental Anguish

This section should contain 3-4 paragraphs describing in detail why your client deserves and is due monies for pain and suffering and explains how much.

DAMAGES SUMMARY

Current and Past Medical Expenses: $xxxxxx.xx

Future Medical: $xxxxxx.xx

Lost Wages: $xxxxxx.xx

Decreased Earning Capacity: $xxxxxx.xx

Human Damages: $xxxxxx.xx

Total Damages: $xxxxxxx.xx

DEMAND FOR SETTLEMENT

Explain why, in no uncertain terms, you believe this is a fair or even conservative estimate of what is owed to your client in 1-2 paragraphs.

Set forth the exact terms and timeline you are allowing for action in a paragraph.

Explain in 2-3 sentences that failure to responsions will result in specific actions, and name those actions.

Encourage the insurance company to contact you with any questions and other communication.

Sincerely,

Your Name

Signature

Enclosures as Stated

Sample Attorney Demand Letter (for Personal Injury)

Personal injuries can include property or vehicle damage, but they are typically more about a body being harmed. The format below is a mid-length version for easy use.

Law Firm Name

Law Firm Address

Contact Information

Date

Recipient/Contact Name

Recipient Address

Re: Your Insured: Client Name Here

Date Of Incident: ___/___/_____

Claim or File Number:

Dear Sir/Madam,

Our client, (name here), has hired (firm Name) to represent their interest in resolving the matter of personal injury which occurred on ___/___/____. This letter serves as an official notice of demand for (insert explanation of what happened and why the insurance company needs to pay on the claim)

PERTINENT FACTS

Injuries

Describe what the client felt and what they did about it, such as go to the hospital.

SPECIAL DAMAGES

This is where you include economic damages and offer a brief description of why these are verifiable and relevant.

Medical

Past Medical Expenses:

Describe any treatments and list what the doctors found

Future Medical Expenses:

List any anticipated future medical treatments or appointments

Lost Compensation/Wages and/or Impaired Earning Capacity

Explain if and when the client was not at work due to their injuries. If there is enough physical damage to impair future earnings, state that as well and set compensation amounts.

HUMAN DAMAGES

Explain briefly why your client deserves further compensation for pain and suffering.

Pain, Suffering, and Mental Anguish

This section should contain 3-4 paragraphs describing in detail why your client deserves and is due monies for pain and suffering and explains how much.

DAMAGES SUMMARY

Current and Past Medical Expenses: $xxxxxx.xx

Future Medical: $xxxxxx.xx

Lost Wages: $xxxxxx.xx

Decreased Earning Capacity: $xxxxxx.xx

Human Damages: $xxxxxx.xx

Total Damages: $xxxxxxx.xx

DEMAND FOR SETTLEMENT

Explain why in no uncertain terms, you believe this is a fair or even conservative estimate of what is owed to your client in 1-2 paragraphs.

Set forth the exact terms and timeline you are allowing for action in a paragraph. Such as, “If we receive no response by (date), we will explore all further legal actions per local and state law.”

Explain in 2-3 sentences that failure to responsions will result in specific actions, and name those actions.

Encourage the insurance company to contact you with any questions and other communication.

We hope to resolve this matter as soon as possible.

Sincerely,

Your Name

Signature

Contact Information

Sample Attorney Demand Letter (for Property Damage)

Property damage can be complex or extremely cut-and-dried. Either way, a simple, straightforward, and brief letter like the one below may be the most effective. When you’re done, attach copies of any bills, police reports, or other vital information that confirms the damage.

Law Firm Name

Law Firm Address

Contact Information

Date

Recipient/Contact Name

Recipient Address

Re: Your Insured: Client Name Here

Date Of Incident: ___/___/_____

Claim or File Number:

Dear Sir/Madam,

Client name has retained our services in their ongoing effort to settle the issue of (describe the property damage in a sentence) on ___/___/_____ (date).

Include one to three paragraphs about why the insurance company is responsible and who verified the damages, such as police taking a report for the vandalized property.

Below you will find a summary of the damages to date:

  • Repair Costs: $xxx,xxx.xx
  • Replacement of part or whole: $xxx,xxx.xx
  • Other Damages: $xxx,xxx.xx
  • Lost Wages: $xxx,xxx.xx
  • Special Damages: $xxx,xxx.xx
  • Human Damages: $xxx,xxx.xx

Total Damages – $xxx,xxx,xxx.xx

Your/The insured was rightfully cited by (police or other authorities). Add a paragraph about the damages and their negligence or refusal to acknowledge them.

Include settlement terms and timeframe.

Explain in 2-3 sentences that failure to responsions will result in specific actions, and name those actions.

Encourage the insurance company to contact you with any questions and other communication.

Thank you in advance for your prompt response.

Sincerely,

Your Name

Signature

Contact Information

Final Thoughts

When you are hurt, or your things are damaged, and it’s someone else’s fault, their insurance is obliged to pay. However, the more insurance companies pay claims, the less money they make. Rather than losing, they may try to put you off until the reasonable period for making a settlement demand has passed. Get an attorney immediately and have them submit a demand letter on your behalf, so you don’t have to wait, hope, and guess when or if an insurance company might reimburse you for the trouble and pain you’ve gone through.

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