How to Write a Winning Demand Letter: A Complete Guide

The average demand letter takes 8-12 hours to draft. Yet firms that invest in comprehensive, well-structured demands consistently achieve better settlement outcomes. The difference isn't luck—it's methodology.

This guide breaks down the six essential components of demand letters that consistently achieve maximum settlements.

Why Demand Letter Quality Matters

Insurance adjusters review hundreds of demands each month. They can spot a weak demand in seconds—and they'll use every gap to justify a lowball offer.

A winning demand does three things:

1. Establishes liability so clearly that fault isn't debatable
2. Documents damages so thoroughly that nothing is left on the table
3. Tells a story so compelling that the adjuster feels the case value

Miss any of these, and you're negotiating from weakness.

The 6 Components of a Winning Demand Letter

1. Liability Section

Your liability section must answer one question: Why is the defendant responsible?

What to include:

• Negligence elements — Duty, breach, causation, damages (briefly)
• Evidence summary — Police report findings, citations issued, witness statements
• Defendant conduct — Specific actions or omissions that caused harm
• Comparative negligence response — Preempt any blame-shifting

Best practices:

• Lead with your strongest evidence
• Quote directly from police reports ("Officer noted defendant failed to yield...")
• Address potential defenses before the adjuster raises them
• Keep it factual—save the narrative for the pain and suffering section

Common mistakes:

• Burying the liability conclusion at the end
• Failing to address obvious comparative negligence arguments
• Over-relying on conclusory statements without evidence

2. Medical Summary

The medical summary is the backbone of your demand. It transforms scattered records into a clear treatment narrative. For a deep dive on building effective chronologies, see our guide: Medical Chronologies Explained.

Structure your summary chronologically:

Include these specifics:

• ICD-10 codes for every diagnosis (adds credibility)
• Objective findings from imaging and tests
• Treatment dates and total visit counts
• Provider specialties (orthopedic surgeon carries more weight than chiropractor for surgical cases)

What adjusters look for:

• Gaps in treatment (they'll use these against you)
• Consistency between complaints and objective findings
• Progression that matches injury severity
• Pre-existing conditions (address these directly)

3. Damages Calculation

Your damages section must be comprehensive and defensible. Leave nothing out.

Special Damages (Economic)

Calculate and itemize:

• Medical expenses — Past bills with itemized totals by provider
• Future medical care — Projected costs with supporting documentation
• Lost wages — Past income loss with employer verification
• Lost earning capacity — Future income impact with vocational analysis if applicable
• Property damage — Vehicle repair/replacement, personal property
• Out-of-pocket expenses — Mileage, medical equipment, home modifications

General Damages (Non-Economic)

These often exceed special damages. Include:

• Pain and suffering
• Emotional distress
• Loss of enjoyment of life
• Loss of consortium (if applicable)
• Disfigurement and scarring

Presenting the calculation:

Always show your math. Adjusters respect demands that justify every number.

4. Pain and Suffering Narrative

This is where you transform medical records into a human story. The narrative section often determines whether you get policy limits or a fraction of case value.

Effective narrative elements:

• Daily life impact — What can't your client do anymore?
• Before and after contrast — Who were they before the accident?
• Specific examples — "She can no longer pick up her 3-year-old daughter"
• Duration of suffering — Acute pain, chronic limitations, permanent changes
• Emotional toll — Anxiety, depression, fear, frustration

Structure your narrative:

1. The person before — Active lifestyle, career, family role
2. The incident — Brief, factual account
3. Immediate aftermath — Pain, fear, emergency treatment
4. Treatment journey — Procedures, setbacks, slow progress
5. Current reality — Permanent limitations, ongoing struggles
6. Future outlook — What they'll never regain

Language that works:

• Use active voice and specific details
• Quote the client directly where powerful
• Reference medical records that support the narrative
• Avoid hyperbole—let the facts speak

Example passage:

"Before March 15th, Sarah coached her daughter's soccer team every Saturday. She hasn't been able to stand for more than 20 minutes since the collision. Her daughter now asks why mommy can't come to games anymore."

5. Supporting Documentation

Your demand is only as strong as its documentation. Missing exhibits invite skepticism.

Required exhibits:

• Police report
• All medical records (complete, not summaries)
• Medical bills with itemization
• Proof of lost wages (employer letter, pay stubs, tax returns)
• Photos (vehicle damage, injuries, scene)
• Witness statements

Organization best practices:

• Number exhibits sequentially
• Create an exhibit index
• Reference exhibits by number in the demand ("See Exhibit 4, p. 12")
• Ensure bills match records (every treatment should have a corresponding bill)

Common documentation gaps:

Before sending, audit your package: Does every claim have supporting documentation?

6. The Demand Amount

Your demand number sets the negotiation anchor. Too low leaves money on the table. Unreasonably high signals inexperience.

Calculating your demand:

1. Total special damages — Every documented economic loss
2. Multiply for generals — 2-5x specials depending on severity, liability clarity, and venue
3. Consider policy limits — No point demanding $500K on a $100K policy
4. Factor in case weaknesses — Adjust for gaps, pre-existing conditions, comparative fault
5. Leave negotiation room — Your first demand isn't your settlement number

When to demand policy limits:

• Clear liability with no comparative fault
• Severe, permanent injuries
• Specials that approach or exceed limits
• Strong venue for plaintiff verdicts

Presenting the demand:

State your number clearly and confidently:

"Based on the foregoing, demand is made for the policy limits of $100,000. This demand will remain open for 30 days from the date of this letter."

Include a deadline. Open-ended demands invite delay.

Common Mistakes That Kill Settlements

1. Incomplete medical records

Missing records create gaps that adjusters exploit. Audit your package before sending.

2. Weak liability arguments

Don't assume liability is obvious. Prove it with evidence, not assertions.

3. Undervalued non-economic damages

Pain and suffering often exceeds specials. Don't shortchange this section.

4. Generic narratives

"Client experienced pain and suffering" means nothing. Specific details create value.

5. Poor organization

If the adjuster can't find information, they'll assume it doesn't exist.

6. No deadline

Without a response deadline, your demand sits in a pile indefinitely.

Timing Your Demand

Send after Maximum Medical Improvement (MMI)

Premature demands undervalue future damages. Wait until:

• Treatment is complete or ongoing care needs are clear
• Prognosis is established
• Future medical costs can be projected

Strategic timing considerations:

• Policy limits demands may warrant shorter deadlines
• Complex cases benefit from early expert designations
• Statute of limitations should inform your timeline

How Technology Accelerates Demand Creation

The demand process has historically been a bottleneck—8+ hours of record review, chronology building, and drafting for each case.

Modern tools can compress this timeline while improving quality:

• Automated medical chronologies extract treatment timelines from thousands of pages in minutes
• Damages calculators ensure no billable item is missed
• Source-linked citations let you verify every fact against original documents
• Standardized formatting ensures consistent, professional presentation

The result: More comprehensive demands, delivered faster, with every claim backed by documentation. Learn how AI drafting works.

Next Steps

A winning demand letter isn't about length—it's about completeness, clarity, and compelling presentation.

Your checklist before sending:

• Liability established with evidence
• Medical summary is chronological and complete
• All damages calculated and itemized
• Pain and suffering narrative is specific and human
• Every claim has supporting documentation
• Demand amount is justified and includes deadline

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Ready to streamline your demand process? See how Precedent helps firms create comprehensive demands in hours, not days.