“Demand letters” are letters, usually written by an attorney on a client’s behalf, outlining the dispute between parties and demanding that the recipient of the letter take or cease a certain action.  This is usually the start of the negotiation process that will, hopefully, result in a resolution to avoid filing a claim in court and going through litigation.

Sometimes, our firm has clients who receive demand letters but decide they do not want to report it to their insurance company – most often, because they are worried that their insurance premium will increase, particularly if they believe the claim is frivolous.

It’s very important to understand your insurance policy and any unique circumstances.  In some cases, a policy may have a provision where if you fail to report a pending dispute you could lose coverage for all future claims as a violation of your insurance policy agreement.  Let a trusted advisor help you when you receive a demand letter. Most insurance companies have anonymous hotlines where you can ask them about the next steps without any potential harm or disclosing the case specifics.   Since we have standing relationships and regular calls with our clients, we’re able to use our insider knowledge to redirect clients so they don’t make expensive mistakes that cost them much more in the future.

Sometimes it’s not as simple as just a premium increase.

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