What happens after the demand letter?
After you send a demand letter, one of several things can happen: The insurance company accepts your demand, and the settlement goes forward. You’ll receive the compensation you asked for and sign a release of liability in exchange.
Can a demand letter be sent to an employer?
A demand letter may also need to be sent to an employer who has not paid promised wages. Demand letters can be sent for other purposes than financial debt.
How much to ask for in your demand letter?
A general rule is 75% to 100% higher than what you would actually be satisfied with. For example, if you think your claim is worth between $1,500 and $2,000, make your first demand for $3,000 or $4,000. If you think your claim is worth $4,000 to $5,000, make your first demand for $8,000 or $10,000.
Can a formal demand letter lead to settlement?
In as many as one-third of all disputes, your demand letter will catalyze settlement. Even if you don’t settle the case, explaining your position in a formal letter affords you an excellent opportunity to organize the matter. Learn more about preparing evidence for your small claims court case.
What happens when you send a demand letter to an insurance company?
A demand letter may also need to be sent to an employer who has not paid promised wages. Demand letters can be sent for other purposes than financial debt.
A general rule is 75% to 100% higher than what you would actually be satisfied with. For example, if you think your claim is worth between $1,500 and $2,000, make your first demand for $3,000 or $4,000. If you think your claim is worth $4,000 to $5,000, make your first demand for $8,000 or $10,000.
In as many as one-third of all disputes, your demand letter will catalyze settlement. Even if you don’t settle the case, explaining your position in a formal letter affords you an excellent opportunity to organize the matter. Learn more about preparing evidence for your small claims court case.
After you send a demand letter, one of several things can happen: The insurance company accepts your demand, and the settlement goes forward. You’ll receive the compensation you asked for and sign a release of liability in exchange.