What is a demand letter and why does it matter?

What is a demand letter and why does it matter?

A demand letter is a formal written communication from your attorney to the insurer setting out the facts, legal theories, damages evidence, and a settlement demand. Under Georgia’s bad faith statute (O.C.G.A. § 33-4-6), an insurer that refuses to settle within policy limits after a proper demand may be exposed to extra-contractual damages. A well-crafted demand letter from an experienced Georgia personal injury attorney is one of the most powerful tools for driving fair settlement offers.