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Policy Limits Demand Letter (Insurance) Template
Make a clear, time-limited demand that the insurer tender its full policy limits to settle your claim.
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Policy Limits Demand Letter (Insurance) Template
[Your Full Name]
[Your Mailing Address]
[City, State/Province, ZIP/Postal Code, Country]
Phone: [Your Phone Number]
Email: [Your Email Address]
[Date]
[Insurance Company Name]
Attn: [Claims Adjuster Name or “Claims Department”]
[Insurance Company Address]
[City, State/Province, ZIP/Postal Code, Country]
Subject: Policy Limits Settlement Demand – Claim No. [Claim Number] – Policy No. [Policy Number]
1. Introduction and Claim Information
Dear [Adjuster Name] / [To Whom It May Concern],
I am writing regarding the above-referenced claim under Policy No. [Policy Number] issued by [Insurance Company Name]. This letter sets out a summary of the incident, liability, my damages, and my formal demand that you tender the full policy limits to settle this claim.
Insured Name: [Insured Full Name / Business Name]
Claimant Name: [Your Full Name]
Claim Number: [Claim Number]
Date of Loss / Incident: [Date]
Type of Claim: [Auto / Premises / Liability / Other]
2. Facts of the Incident and Liability
On [Date] at approximately [Time], the incident occurred at [Location]. In summary:
Description of what happened: [Incident Description]
Parties involved: [Names and roles of parties involved]
Based on available information, liability rests with your insured because:
[Short explanation of fault, e.g., traffic law violation, unsafe condition, negligent act or omission]
I am not aware of any valid defense that would reasonably relieve your insured of responsibility for this incident and the resulting damages.
3. Injuries, Losses, and Impact
Personal Injuries (if applicable)
I suffered the following injuries as a result of the incident:
[Injury Description 1]
[Injury Description 2]
[Additional Injuries]
Treatment has included:
Initial treatment provider and date: [Provider Name, Date]
Follow-up treatment providers and dates: [Provider Names, Dates]
Diagnostic tests: [Types of tests and dates]
Procedures, surgeries, or therapies: [Descriptions and dates]
Current condition and prognosis:
[Brief description of ongoing symptoms, limitations, or permanent effects]
Property Damage or Other Losses (if applicable)
Property damaged: [Description]
Nature and extent of damage: [Short Description]
Repair or replacement status: [Status]
4. Summary of Damages
The incident has resulted in substantial damages, including but not limited to:
Economic Damages
Medical bills (past): [Currency and Amount]
Estimated future medical care (if any): [Currency and Amount]
Lost income or earning capacity (past and, if applicable, future): [Currency and Amount]
Property damage and related costs: [Currency and Amount]
Other out-of-pocket expenses: [Currency and Amount]
Subtotal – Economic Damages: [Currency and Amount]
Non-Economic Damages (where applicable)
Physical pain and discomfort;
Emotional distress and mental anguish;
Limitations on daily activities, work, and family life;
Loss of enjoyment of life and other non-economic harm.
Estimated Non-Economic Damages: [Currency and Amount]
Total Damages (Current Approximate Value)
Total Damages: [Currency and Total Estimated Amount]
Based on the severity of the injuries, the documented and anticipated expenses, and the non-economic impact, I believe that the fair value of this claim exceeds or is at least equal to the available policy limits.
5. Policy Information and Limits
To the extent known, the relevant policy information is:
Policy Number: [Policy Number]
Named Insured: [Insured Name]
Coverage type: [Liability / UM/UIM / Other]
Per-person / per-occurrence limits: [Policy Limits Information]
If my understanding of the applicable limits is incorrect or incomplete, please promptly confirm in writing the available limits for this claim.
6. Policy Limits Settlement Demand
In light of the clear liability, the seriousness of the injuries and losses, and the current and potential future damages, I hereby make a time-limited demand that [Insurance Company Name] tender the full applicable policy limits to settle all claims against your insured arising from this incident.
Policy limits demanded: [Currency and Policy Limits Amount]
This demand is contingent on:
Payment of the full policy limits; and
Execution of an appropriate release in favor of your insured and any other parties covered under the policy, as may be agreed in a final written settlement.
7. Supporting Documentation
To assist with your evaluation, I can provide or have enclosed copies of key documents, including:
Police or incident report (if applicable);
Medical records and itemized medical bills;
Reports or notes from treating providers;
Proof of lost income or earnings;
Property damage estimates or total loss documentation;
Photographs of the scene, injuries, and property damage;
Prior correspondence regarding this claim.
If you require additional specific documentation to evaluate this policy limits demand, please request it in writing within the timeframe described below.
8. Deadline for Response
This is a time-limited policy limits demand. Please provide a written response no later than:
Response Deadline: [Date]
Your response should state whether you:
Accept this policy limits demand and agree to tender the full limits;
Require specific additional documentation to evaluate the claim; or
Decline to tender the limits, with a detailed explanation of the reasons.
9. Notice of Possible Next Steps
If you do not accept this policy limits demand and tender the full limits by the Response Deadline, or if you do not provide a reasonable basis for declining, I may consider one or more of the following steps, as allowed by law:
Continuing all further communications through a legal representative;
Pursuing litigation against your insured to seek full compensation for my damages;
Exploring any additional rights or remedies that may be available concerning your handling and evaluation of this claim.
10. Reservation of Rights and Closing
Nothing in this letter waives or limits any rights or remedies I may have under applicable law or otherwise. All such rights and remedies are expressly reserved, including the right to revise the amounts claimed and the settlement position if new information, bills, or losses arise.
I would prefer to resolve this matter promptly and fairly within the policy limits, without the need for prolonged litigation. Please treat this letter as a formal, time-limited policy limits demand and respond in good faith by the Response Deadline.
Sincerely,
[Your Signature, if printed]
[Your Printed Name]
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Learn more about
Policy Limits Demand Letter (Insurance) Template
Click below for detailed info on the template.
For quick answers, scroll below to see the FAQ.
Click below for detailed info on the template.
For quick answers, scroll below to see the FAQ.
POLICY LIMITS DEMAND LETTER (INSURANCE) TEMPLATE FAQ
What is a policy limits demand letter?
A policy limits demand letter is a formal written request asking an insurance company to pay the full amount of the available liability or coverage limits to settle a claim. It explains the incident, liability, and damages, and states why the claim is reasonably worth at least the policy limits.
When should I use a policy limits demand letter?
You typically use this letter when your injuries, losses, or potential damages appear to be at or above the available insurance limits. It is commonly used in serious injury, wrongful death, or high-value property or liability cases.
What should a policy limits demand letter include?
It should identify the policy and claim, describe the incident and why the insured is liable, summarize injuries or losses, list key damages and supporting documents, state the policy limits (if known), and clearly demand tender of the full limits by a specific deadline.
Can I use this template for auto, premises, or other liability claims?
Yes. You can adapt this template for auto accidents, premises liability, products liability, or other claims where a liability policy applies. Adjust the facts, types of damages, and attached documents to match your situation.
Does sending a policy limits demand letter guarantee payment of the limits?
No. The insurer may accept, reject, or negotiate. This letter simply presents your position and creates a clear record of your demand and supporting facts. Whether the insurer must pay the limits depends on the policy language, facts, and applicable law.
Can AI Lawyer help me customize this policy limits demand letter?
Yes. AI Lawyer can help you tailor this Policy Limits Demand Letter (Insurance) template by organizing your facts, medical or loss information, and settlement demand into clear language. You still provide the real documents, numbers, and decisions about settlement, negotiation, or legal action.
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