Conclusion. As you can see, demand letters can be an efficient option for settling disputes. They can expedite a successful outcome and avoid costly litigation. Even if you do end up filing a lawsuit, a demand letter shows the court that you reasonably tried to work with the other party to settle the problem.

Do companies respond to demand letters?

Some employers ignore demand letters, or send a half-baked (off-the-cuff) response. ... Generally, employers should forward the demand letter to counsel for review and preparation of a prompt response. While lawsuits are not always averted by the response to a demand letter, they often are.

How long after demand letter can I expect settlement?

After you've sent your demand letter, which is a letter telling the insurance company how much you believe you're owed for a settlement, the insurer has control of the clock. However, you should receive a settlement check within two weeks to two months, roughly.