Legal Demand for Coverage

A Legal Demand for Coverage is a formal written request by a policyholder or claimant for an insurance company to provide coverage for a particular claim or loss under the terms of an insurance policy. The demand typically includes a description of the claim, the applicable policy provisions, and the amount of coverage being sought, along with any supporting documentation or legal arguments. Legal demands for coverage are often used as a precursor to filing a lawsuit against an insurer for breach of contract or bad faith, and may be required by state insurance laws or the policy itself as a condition of pursuing legal action.