Pines Salomon Personal Injury Lawyers | February 6, 2025 | Personal Injury
A settlement demand letter is critical to the personal injury settlement process because it kicks off settlement negotiations. Due to its importance, you need to understand how to draft it properly. A well-written settlement demand letter can render settlement of your claim faster, easier, and less stressful.
Determine the Value of Your Claim
Before you write a settlement demand letter, you need to calculate the approximate value of your personal injury claim. Your claim likely includes most of the following subcomponents:
- Medical expenses: Wait until your doctor declares that you have reached MMI (Maximum Medical Improvement). MMI is the point where further medical treatment is unlikely to improve your condition.
- Lost earnings: If you are an employee, your employer can help you calculate your lost earnings. If you are self-employed, things can get more complicated.
- Diminished earning capacity: If you are suffering from a permanent disability, diminished earning capacity is the total amount of income your disability will cost you over the remainder of your working lifetime.
- Out-of-pocket expenses: This could mean medication, medical equipment, child care while you’re in recovery, and even parking fees for doctor’s appointments.
- Noneconomic damages: Noneconomic damages can include pain and suffering, emotional distress, disfigurement, loss of enjoyment of life, and other intangible losses.
- Insurance coverage limits: Insurance coverage limits are functional limitations because the insurance company has no obligation to pay you a dime more than their policy limits.
This is only a partial list of possible damages. You might even qualify for punitive damages.
The Format of Your Letter
Avoid relying entirely on a demand letter sample or template found online. Use the following outline as a guide, but adapt it to fit the specifics of your case, as each situation is unique. In a settlement demand letter, you should:
- Describe your injuries and medical treatment.
- State why the defendant is liable. If you’re claiming negligence, for example, state exactly why.
- List your damages by breaking them down into subcomponents–medical expenses, pain and suffering, etc. (see above).
- Demand a settlement. Most demand letters include a specific dollar-and-cents amount.
- Set a date by which you will file a lawsuit if the opposing party fails to respond.
- Include all necessary supporting documentation, such as police reports, medical records, records of lost earnings, etc.
The insurance company will probably respond with a “reservation of rights” letter. This letter asserts that the insurance company reserves the right to deny your claim if it lacks merit. It might issue a counteroffer, or it might flatly deny your claim. You should be ready to file a lawsuit immediately after a denial of liability. Talk to your lawyer, however, before actually filing one.
Demand Letter Drafting Tips
Observe the following drafting tips when writing your settlement demand letter:
- Gather all necessary information before you begin writing.
- Outline your letter before you write it. The outline should be organized and concise.
- Be brief, but not too brief. Insurance adjusters are busy people, and you need them to read all of your letter.
- Avoid bluster. Insurance adjusters have heard it all before.
- Read it aloud. Is it easy to understand? Is it logical?
- If you insist on writing your demand letter yourself, let a lawyer take a look at it before you send it out.
Send your letter by surface mail as a registered letter, with a return receipt requested. You might also send an e-copy. Be sure to keep a copy for your records.
Let a San Diego Personal Injury Lawyer Help With Your Settlement Demand Letter
Hiring a reputable personal injury law firm with a strong track record can add significant credibility to your demand letter. Experienced attorneys who have successfully secured substantial personal injury settlements are well-versed in crafting effective settlement demand letters. While no ethical lawyer can guarantee specific outcomes, retaining a skilled legal team can greatly enhance your chances of obtaining a favorable settlement.
Contact the Personal Injury Lawyers of Pines Salomon Injury Lawyers in San Diego, CA, for Help Today
For more information, contact an experienced personal injury lawyer at Pines Salomon Personal Injury Lawyers to schedule a free initial consultation today.
We proudly serve San Diego County and its surrounding areas:
Pines Salomon Injury Lawyers – San Diego Office
835 5th Avenue #302, San Diego, CA 92101
(858) 551-2090
Available 24/7
Pines Salomon Injury Lawyers – La Jolla Office
4660 La Jolla Village Dr. San Diego, CA 92122
(858) 585-9031
Available 24/7
