Procedural

What is Demand Letter?

A formal letter from plaintiff's counsel to the insurance company or defendant outlining the case facts, damages, and a settlement demand.

Definition

A demand letter is the opening move in pre-litigation settlement. It typically includes a statement of facts, liability analysis, summary of medical treatment, lost wages, and a specific monetary demand. Well-drafted demand letters often resolve cases pre-suit; poorly drafted ones force litigation.

How it applies in personal injury cases

Quality matters. Demands that anchor too low get countered low; demands that anchor too high signal unrealistic plaintiff. Including jurisdiction-specific verdict comparables strengthens the demand. Many firms now use AI-assisted drafting to produce strong first drafts at scale.

Related terms

Policy Limits

The maximum amount an insurance company will pay under a specific policy for a covered loss.

Statute of Limitations

The legally enforceable deadline by which a plaintiff must file a lawsuit, after which the claim is time-barred.

This entry is a plain-English reference for personal injury practice. It is not legal advice — consult a licensed attorney in your jurisdiction for the law applicable to your case.

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