Policy Limit Demand in a Personal Injury Case
Bill Allen | April 17, 2025 | Personal Injury
Insurance policies contain policy limits that restrict the amount of liability the insurance company has for a claim. For example, Florida law requires drivers to purchase a minimum of $10,000 in Personal Injury Protection (PIP) insurance coverage. If you purchase only the required coverage, your policy limit would be $10,000. Your insurance provider would not be liable for any amount over the policy limit.
Likewise, many homeowners have property insurance that covers liability if someone is injured on their property. Suppose your coverage is $50,000. In that case, if someone is injured on your property and it is your fault, your insurance company is only required to pay up to the policy limit of $50,000 for damages. You could be personally liable for damages that exceed the policy limits.
What Is a Policy Limit Demand in a Personal Injury Case in Florida?
If another party causes your injuries, Florida tort laws might entitle you to economic and non-economic damages. You may be able to file an insurance claim for your damages with the party’s liability insurance provider. However, the provider is only liable for your damages up to the policy limits. A policy limit demand is an offer to settle your claim for the full limits of the relevant insurance policy.
Generally, you make the offer by sending the insurance company a policy limit demand letter. A policy limit demand letter typically includes the following:
- A detailed description of the accident or incident that caused your injuries, including the contributing factors, by the insured party that resulted in their liability for your damages
- A discussion of the type and severity of your injuries, including your medical diagnosis, treatments received, and ongoing restrictions from permanent impairments
- An explanation of the statutes and case law that creates liability for your damages, such as negligence, intentional torts, or strict liability
- A discussion of your damages, including specific financial losses, emotional distress, and physical injuries
- The total value of all your damages and a demand for the full policy limits because your damages equal or exceed the limits
A policy limit demand letter also includes copies of supporting documentation, such as medical records and evidence of lost wages. The insurance company reviews your demand and responds by either accepting the settlement offer, denying liability, or making a counteroffer for settlement.
Drawbacks of Accepting a Policy Limit Settlement Offer in a Personal Injury Case
Whether you should accept a policy limit settlement offer from an insurance company depends on several factors. Things to consider before accepting a settlement from an insurance company include:
Evidence Proving Fault
Injured parties have the burden of proof in personal injury cases. There must be sufficient evidence to prove that the other party’s actions caused your injuries. The level of proof is by a preponderance of the evidence, meaning it is more likely than not that the other party caused your injuries.
You may consider pursuing a personal injury lawsuit if you have strong evidence proving liability. However, there may be a lack of evidence in your case. If so, accepting a settlement offer might be better than allowing your case to go to trial and gambling on whether a jury will believe you or the other party.
Time and Cost of Pursuing a Lawsuit
Resolving a personal injury lawsuit could take more than a year from when the lawsuit is filed. Litigating a personal injury case can be more costly than accepting a settlement. A personal injury lawyer can explain the pros and cons of accepting a settlement versus spending the time and money to go to trial.
Waiving Rights to Claims
When you sign a settlement agreement, you generally waive your rights to file a lawsuit or pursue other claims. This option might not be in your best interest if you could claim other sources of compensation, such as filing an uninsured motorist claim with your insurance provider. If you accept a policy limit offer, you must ensure it does not prevent you from pursuing these other claims.
Before accepting a settlement offer, it is in your best interest to consult an experienced personal injury lawyer. Signing releases, settlement agreements, and other documents for insurance companies without having a lawyer review the documents could result in giving up legal rights.
Do I Need an Attorney for a Policy Limit Demand in a Personal Injury Case?
You are not required to be represented by an injury lawyer to file an insurance claim or accept a settlement offer from an insurance company. However, keep in mind that insurance companies protect their best interests. They are not concerned about whether you receive a fair amount for your personal injury claim.
Therefore, it is wise to be represented by an attorney to ensure your best interests are protected. If you are concerned about a personal injury claim, schedule a free consultation with a trusted personal injury attorney to learn about your legal options.
Contact Our Gainesville Personal Injury Law Firm at Allen Law Accident & Injury Lawyers in North Central Florida
If you’ve been involved in a car accident and need help navigating the process of obtaining an accident report or dealing with your insurance company, don’t hesitate to reach out. Our team of experienced personal injury attorneys at Allen Law is here to provide expert legal guidance every step of the way.
If you need legal assistance, contact the Gainesville car accident lawyers at Allen Law Accident & Injury Lawyers at your nearest location to schedule a free consultation today, we’re open 24 hours daily.
We have three convenient locations in Marion County and Alachua County, North Central Florida:
Allen Law Accident & Injury Lawyers – Gainesville Office
2550 SW 76th St #150
Gainesville, FL 32608
(877) 255-3652
Allen Law Accident & Injury Lawyers – Downtown Gainesville
621 W University Ave
Gainesville, FL 32601
(866) 928-6292
Allen Law Accident & Injury Lawyers – Ocala Office
112 S Pine Ave
Ocala, FL 34471
(352) 351-3258
