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What is a Demand Letter?

Posted on August 10, 2022 in

Any time a person sustains an injury caused by the negligence of another, they should be able to recover compensation for their losses. However, recovering this compensation can be challenging. There are various steps that individual injury victims must go through in order to recover compensation, and one of these steps is sending a demand letter to the at-fault party and the insurance carrier. Here, we want to discuss what goes into a demand letter as well as the importance of working with an attorney to help craft the letter.

Demand Letters for a Colorado Personal Injury Claim

Demand letters are typically the opening salvo when it comes to trying to recover compensation after an injury occurs. The demand letter is written by the injured individual or their attorney and sent to the at-fault party, their insurance carrier, or their attorney. We strongly recommend that any person who has been harmed due to the negligence of others work with an attorney who can help them draft a coherent and concise demand letter.

The demand letter will include a few elements, and it really needs to be sent fairly early on in the process. However, we need to point out that individuals should not settle their claims until after their medical care has concluded. Doing so would preclude them from recovering additional compensation to cover ongoing medical expenses.

The demand letter will have to be written in a clear manner, and it needs to be professionally formatted. Some of the information presented in the demand letter will include:

  • A description of the incident that caused the injury
  • The facts of the case as known by the plaintiff
  • A brief description of evidence related to the incident
  • A list of the injuries and medical treatment the victim has undergone
  • A description of passport medical care needed in the future
  • Copies of any expenses related to the injury or property damage
  • Medical records related to the current injury

Importantly, the demand letter will include the dollar amount that you and your attorney are seeking from the insurance carrier or at-fault party. There will also be a date by which a response is expected, as well as references to a pending personal injury lawsuit if an adequate settlement amount is not rendered.

How Will the Other Party Respond to a Demand Letter?

Insurance carriers and at-fault parties may respond in various ways to the demand letter.

  1. The insurance carrier could accept the demand amount, but this is not likely.
  2. The insurance carrier will more likely send back a counter offer that is far below the initial demand amount. This is where negotiations will begin in an attempt to move the dollar figure upward.
  3. The insurance carrier could flat out deny the demand made in the letter. At this point, it may be necessary to move forward with a personal injury lawsuit in civil court.

Demand letters are the beginning of the personal injury compensation recovery process. You need to work with a skilled Denver personal injury lawyer who has experience handling these claims and can draft this letter on your behalf.