A policy limit demand is a formal offer to resolve a personal injury claim for the maximum amount covered by an insurance policy. It’s sometimes used as a legal strategy when the potential damages exceed the policy’s limit.
In your personal injury case, if a liable party’s insurance company accepts your policy limit demand, the insurer will avoid the risk of having a larger payout if your case reaches trial and the court awards damages beyond the limit of the defendant’s insurance policy.
Our Marietta personal injury lawyers will explain what a policy limit demand is and how it applies to your case. Regardless of an at-fault party’s insurance coverage, we are committed to fighting for the maximum compensation that you deserve.
How Does a Policy Limit Demand Work?
The goal of a policy limit demand is to resolve an insurance claim for the available policy limits when appropriate. If your demand is accepted, your claim will be settled for the at-fault party’s insurance policy limit.
Meanwhile, in some circumstances, your demand will preserve a potential bad-faith claim if the insurer refuses a valid demand. Here’s what a demand typically includes:
- A description of your accident and the insured party’s liability
- A description of your injuries and their severity, including medical records and other relevant documentation
- An explanation of your damages
- A demand for compensation to the full policy limits
- A deadline for accepting the demand
If an insurance company unreasonably refuses a valid policy limit demand and the case later results in a verdict exceeding the policy limits, it’s possible that the insurer will face bad-faith exposure under applicable law.
When to Use a Policy Limit Demand
Policy limit demands are commonly used when there is clear liability, substantial damages, and a risk of a larger verdict if a personal injury case goes to trial.
Our personal injury attorneys will review the specifics of your situation and how insurance policy limits will affect your case. From here, we’ll determine whether a policy limit demand is a viable option.
With policy limit demands, it’s important to note that insurance companies are required to reasonably act in good faith when handling claims. If an at-fault party’s insurance company unreasonably refuses a reasonable policy limit demand, this has the potential to constitute bad faith and expose the insurer to liability for the full amount of a judgment above the policy limit.
Speak with our attorneys if you are dealing with a concussion or other injuries caused by another party and want to seek compensation from them or their insurer.
Depending on the circumstances, our lawyers will pursue compensation through an insurance claim or a lawsuit. If you proceed with a claim, a policy limit demand is a possible option for you to secure damages.
Types of Compensation to Request in a Policy Limit Demand
Our lawyers will give you information about how the insurance claims process works and what types of compensation are available to you in your personal injury case. Below are some of the economic and non-economic damages you’re able to request in a policy limit demand:
- Medical bills: Ask for compensation for the current and future costs of treating your injuries.
- Lost wages: Incorporate lost income in your compensation request if you are unable to work while you recover from your injuries.
- Pain and suffering: Pursue damages for your emotional distress, physical discomfort, and other pain and suffering related to your injuries.
We will account for your tangible and intangible losses as we build your case for compensation. If we help you file a policy limit demand, we will use medical records, pay stubs, and other evidence to strengthen your compensation request.
How Much Time Do You Have to File a Policy Limit Demand?
Generally, to file a personal injury lawsuit, the statute of limitations in Georgia is two years from the date an injury occurred, with certain exceptions. Our lawyers will discuss the personal injury statute of limitations with you. If warranted, we are able to file a policy limit demand before the statute of limitations for filing a personal injury lawsuit expires.
Under Georgia law, in some personal injury cases, a policy limit demand is required to provide an insurer with at least 30 days to respond. Because of this, our attorneys will include a deadline for the insurer to respond to your demand, which will not be less than 30 days from the receipt of the offer.
If an insurance company accepts your demand, the insurer will issue payment, and the time frame for you to receive it will vary based on the situation. Insurance companies are likely to investigate or seek clarification of the release terms before they decide on policy limit demands.
Learn More About Policy Limit Demands
If you are unsure about what policy limit demands are, remember, you have access to legal guidance. Our personal injury attorneys will evaluate your case and address any questions you have about policy limit demands and other legal topics.
The team at Jones & Swanson has over 50 years of combined experience. We never treat our clients as just another case number. In your personal injury case, we strive to balance compassionate support with aggressive advocacy and make sure that you feel informed and confident at each stage of the legal process.
We will work tirelessly to protect your rights and best interests and guide you through complex legal challenges as your personal injury case moves forward. To find out more, request a free case consultation.
