Demand Letter

A Demand Letter is a formal written communication from a policyholder or their legal representative to an insurance company, demanding payment or other action on a claim. The letter typically outlines the basis for the claim, the damages or losses incurred, and the specific amount or remedy being sought. Demand letters are often used as a negotiation tool to encourage the insurer to settle the claim promptly and fairly, and may be a required step before filing a lawsuit or taking other legal action.