Using a Demand Letter To Receive Compensation


If you’ve been injured, another party may be responsible for handling financial burdens incurred. You can go about this several ways, but one noteworthy tool at your disposal is a demand letter. While these letters won’t guarantee you’ll receive compensation, here are some tips and things to know about them.

Tip: Get Professional Help

A lawyer will know how to write a demand letter, and this matters because if you just wing it, you may end up saying something that could negatively affect your case. A lawyer can help you organize the information in a way that best presents your case, and they will help you keep out unnecessary information. The reason insurance companies recommend you don’t admit fault in an accident, even if you really do think it may have been your fault, is because there are so many different factors to be considered, and you may not actually be the party responsible. This is the same reason you want to have a lawyer help — you may say inadvertently add a detail or say something that completely ruins your case, even if your case is completely justified. Play it safe and don’t write a demand latter yourself.

Demand Letters Can’t Guarantee Results

It’s important for people to know that a demand letter is not a legally-binding document — in fact, one of the best things about demand letters is they can help you avoid the legal system. Ideally, you and the other party can sort the affair out between yourselves. By avoiding taking this through the legal system, you’ll save on costly legal fees, not to mention all the other paperwork and time that would be required. In fact, it doesn’t hurt to use that information to encourage the other party to get this sorted out as quickly as possible.

Letters Can Start a Dialogue

A hidden value of a demand letter is that it obviously won’t be sent and received at the time of the incident or even immediately after — the reason this matters is because it provides time for everyone involved to cool down and think more clearly about the event. The tone of your letter can make all the difference: be direct, but not harsh. Help those you are seeking compensation from understand why they should be held accountable for the amount you are expecting. Provide accurate information and help them understand you’re not just money-grabbing; that they really do hold a responsibility in the matter.

Tip: Letters Let Them Know You’re Serious

Receiving a letter — even if it’s not legally binding — may light a fire under those responsible to get you taken care of. It’s easy to brush off a one-time discussion or phone call, but if you send a letter, they’ll know you’re not fooling around. Providing a deadline for them can also drive the point home.

By providing a firm and factual demand letter, you may increase your chances of being compensated. Even if the letter doesn’t achieve the immediate results you’re hoping for, it can be used later on as evidence should you end up in court.