How to Write a Settlement Demand Letter | Samples – Template

After being involved in a workplace accident, car crash, or any other accident, most people experience a hard time getting the necessary financial compensation. Because of this, they resort to demanding payment for their troubles by writing the party they deem responsible for their misery demand letter.

In the settlement demand letter, they go ahead and clearly explain why you need to be compensated for your financial losses. This can be brought about by the loss of income or rising medical expenses.

However, if you believe you aren’t guilty of the mistake, you need to make a counteroffer by writing a settlement demand letter. But how can you go about writing a settlement demand letter? If these and other questions are what are troubling you, this article is meant for you. To help you out, here’s everything you need to know about the settlement demand letter.

What is a Settlement Demand Letter?

The settlement demand letter is a document written when asking for compensation due to persona injury. This letter is usually addressed to the plaintiff who has already sent you a demand letter asking for payment for the sustained injuries or any other damages suffered. In this settlement demand letter, a counteroffer is usually included to persuade the defendant to settle instead of this matter proceeding to court.

What to Include

While the defendant is undoubtedly not pleased with the counteroffer, they might have a strong inclination to accept due to the strong incentive to do so. Otherwise, they’ll have to contend with prolonged and expensive legal battles, with a higher likelihood of not getting anything from this case.

The details to be included in this formal letter include;

  • Evidence backing the account of events as detailed in the settlement demand letter.
  • An outline of the original event and stating all the underlined factual arguments.
  • A summary of all the appropriate legal standards applicable to the issue.
  • A settlement offer as well as the timeline and terms for acceptance.

How to Offer Settlement Demand Letter?

There are steps you need to follow when offering a settlement demand letter including;

Step 1: Understand the claim

You first need to start by carefully going through the claim to familiarize yourself with the monetary demands and factual claims. When doing this, you need to consider that it’s your duty as the plaintiff to state the facts and law. It’s best you do this even when everything explained is correct, and you don’t automatically have to observe the financial claims backed by law. Moreover, you need to examine all the appropriate legal standards and evidence.

Step 2: State the terms

When offering a statement, you need to be specific. This means stating the timeline for acceptance, financial terms, and the conditions of this offer.

Both parties are expected to sign a confidentiality agreement, and everyone agrees never to discuss the settlement or incident and state every legal claim that arises from this incident.

Step 3: Include a tempting layout

As you write the demand letter, you need to make it undercut the previous demand. Simultaneously, you shouldn’t just overestimate or underestimate the claimant. It’s also vital when writing this counteroffer not to include an acknowledgment of responsibility. Otherwise, including an admission of guilt might later be used by the plaintiff in their defense.

Step 4: Give A reply time-frame

You should include a clear deadline within when a reply should be made. It’s advisable you provide enough time but ensure it doesn’t exceed a certain duration. Moreover, make sure to observe a tight timeline for your settlement to be considered seriously.

Sample Settlement Demand Letter

July 21, 2021

Dear Mrs. Meadow Selgado,

I got your letter, dated May 10, 2021, where you detailed an account of the vehicle accident you were involved in on March 14, 2021, plus demanded payment summing up to $1500 for injuries suffered due to the incident.

But despite you stating I was solely liable for this incident, the police report doesn’t assign any responsibility to any party. Therefore, I disagree with your version of events and admit to having no responsibility for the incident.

With that said, as a sign of goodwill, I will formally offer you a settlement of $400.00. In return, I am asking you to let go of any future claims against me stemming from the incident.

If you wish to accept this offer, I would appreciate it if I got a written response by June 1, 2021.


Anthony Aprile

Settlement Demand Letter (Word Template)

Settlement Demand Letter (Word Template)


After suffering a personal injury, claimants often write a demand letter asking for compensation from the responsible party for their injuries and other damages. If you’re the defendant, the right thing to do would be to write them a settlement demand letter. With this formal letter, you’ll be able to fight against the accusations being placed upon you. If you didn’t know how to write this document, highlighted above is everything you need to know about the settlement demand letter.

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