Why Accuracy in Your Settlement Demand Letter Matters

If you work in a legal field, you must be aware that a settlement demand letter is one of the most important documents in a personal injury case. It is an official request for compensation outlining the injuries, damages, and financial losses suffered by the plaintiff.

An accurate and well-prepared demand letter is crucial to avoiding and settling disputes. A slight error in a demand letter can weaken the case, not lead to a fair settlement, and even result in a lower settlement than deserved.

Let’s analyze what should be included in the demand letter and why accuracy is crucial in a demand letter for avoiding disputes.

What to Include in an Accurate Settlement Demand Letter?

A demand letter is the first detailed communication between a plaintiff and the insurance company or the opposing party. A strong and accurate letter shows the insurance adjuster that the plaintiff has a well-documented case. To increase the effectiveness of a settlement demand letter, certain elements should be included:

Medical records and bills

The basis of the demand letter is detailed medical records. Insurance adjusters are trained to compare cases based on medical records and bills. In medical records, every diagnosis, treatment, and medical-related bills are correctly recorded. If even one medical expense is missing, it could result in lower compensation.

In the demand letter, write clearly how the damages make the person spend money on hospital bills.

Injury description

Don’t write a demand letter too lengthy; just write what is truly needed. If your case involves severe injuries and has a big impact on life, a detailed demand letter is necessary. Insurance adjusters review multiple claims daily, so using bold or underlined text for key details can help ensure they don’t get overlooked. Highlighting the key points is crucial.

A well-prepared demand letter must

• Explain the severity of the injuries

• Align with medical records

• Describe the long-term impact on daily life and work

Additionally, thoughtful wording and a formal tone can increase the likelihood that an insurer will step in and facilitate a settlement.

Calculation of damages

For writing a settlement demand letter, calculating economic and non-economic damages is a must. Economic damages include medical expenses, property damage costs, and lost wages; meanwhile, non-economic damages include pain, emotional distress, and loss of enjoyment of life.  

Demand should outline all relevant factors, including non-economic damages and economic damages, so include everything the plaintiff has lost as a result of the injury. These damage calculations must be supported by documentation and justified with reasonable explanations.

Incident details

Mention the incident that resulted in injuries and medical expenses. The incident should begin with the date, location, and key details. If the accident details contradict the police report, medical records, or witness statements, the adjuster may question the claim’s validity.

Supporting evidence

Your demand letter should only reference evidence that actually exists. Documentation, such as medical records, bills, and evidence of pain and suffering, should be used to support the claim. This can help to prove the case valid.

Supporting evidence includes:

• Accident reports

• Witness statements

• Photographs or videos

• Medical opinions or life care plans

Do not attach the original document as proof; instead, use a copy of the original.

Why is Accuracy in the Settlement Demand Letter crucial?

A Demand letter helps to resolve disputes calmly before the issue goes to court. Here you can see why accuracy matters:

Clearly presenting the facts

The accuracy of the demand letter ensures that all relevant and needed facts are clearly presented. It is also important to present the facts in a polite manner. This includes:

• The details of the accident, including date, time, and locations

• The clear explanation of how the incident happened

• The injuries sustained and their impact on daily life

• Medical treatments received and future medical needs

• Lost wages due to the inability to work

• Other damages, such as pain and suffering

When your letter is accurate and well-supported, the insurance adjuster is more likely to take the claim seriously and offer a fair settlement rather than trying to reduce the amount.

Avoiding delays in the claim process

Insurance adjusters often look for reasons to delay or deny claims. If your demand letter has incorrect information, missing documents, or unclear explanations, the insurance adjuster may request additional information. It can create delays in the claim process.

If your demand letter is filled with accusations of fraud, the insurance company may quickly deny the claim, making it harder for you to get compensation.

If your demand letter is accurate, complete, and with proper explanations, you increase the chance of a smoother negotiation process and quicker resolution.

Preventing underpayment or denial of claim

If your demand letter is not accurate, the insurance company may argue that the injuries are not as serious as you claim. They might offer a lower settlement or even deny your claim altogether. For instance, if the claimant’s medical expenses are understated, they may not receive enough compensation to cover their bills.

Accurate and well-documented claims are more difficult for insurance companies to dispute, increasing the chances of getting fair compensation.

Strengthening the negotiation process

A well-prepared settlement demand letter provides a strong foundation for negotiations. When your letter is accurate and well-supported, the insurance adjuster is more likely to take the claim seriously and offer a fair settlement rather than trying to reduce the amount.

A strong demand letter can sometimes lead to a settlement without the need for lengthy negotiations or a lawsuit.

How to Ensure Accuracy in Settlement Demand Letter

Let’s focus on how to ensure precision in your settlement demand letter.

Conduct a Thorough Medical Record Review

Reviewing medical records carefully and methodically ensures that no injuries or treatments are overlooked. A detailed medical record review helps to identify all medical expenses and highlight long-term medical needs.

Double-check financial calculations

Ensure that all damages, including medical bills, lost wages, and future care costs, are accurately calculated. Incorrect numbers can instantly undermine your credibility.

Cross-verify with supporting documents

Before sending the demand letter, cross-check the:

• Incident details with accident reports

• Medical expenses with medical records

• Lost wages with employment records

This aims to verify that every claim in the letter is backed by verifiable evidence.

Avoid exaggeration

While you want to present a strong case, exaggerating injuries or damages can backfire. Insurance adjusters deal with exaggerated claims daily, and they’re trained to ignore them. Be firm but professional.

If you tell an adjuster that you’ll file a lawsuit if they don’t respond by a certain date, follow through. Empty threats only weaken your credibility.

The Role of Expert Assistance in Drafting Accurate Demand Letters

Thinking of the complexity of settlement demand letters, many legal professionals choose to outsource demand letters to maintain accuracy.

Outsourcing to experienced medical-legal professionals helps to identify missing or inconsistent medical records and reduce errors that can weaken the claim. They make sure accurate calculations of medical expenses and damages.

At LezDo TechMed, we specialize in demand letter services that help attorneys draft precise, well-structured settlement demand letters.

To sum up,

The main goal of a settlement demand letter is to get fair compensation. An accurate demand letter is a key to securing the best possible compensation for an injury claim. It helps avoid delays, strengthens negotiation position, and ensures that the plaintiff receives the compensation they deserve.