Demand Letter

A Demand Letter is a formal communication sent by a policyholder or their attorney to an insurer, demanding payment or other action on an insurance claim. The letter typically sets forth the facts of the claim, the coverage provisions of the insurance policy, and the amount of compensation being sought. The purpose of the demand letter is to put the insurer on notice of the claim and to initiate negotiations towards a settlement. Demand letters may be used in a variety of insurance contexts, such as property damage claims, personal injury claims, or coverage disputes.