You must still notify your insurer. A seemingly minor injury can develop into a major medical issue, and a small demand can escalate into a full lawsuit. Your policy requires you to report all claims, and deciding not to report a “small” one puts you personally at risk. The insurer has the experience to evaluate the true risk. If coverage isn’t needed, they will simply close the file, but you have protected your position.

You must file within a deadline set by your state’s law, called a statute of limitations. This period typically starts from the date of your injury and is usually between two to three years, but it varies significantly. Missing this deadline will almost certainly bar your claim forever. Some complex cases involving long-term exposure may have different rules, making immediate legal consultation essential.

The claimant (or their lawyer) usually makes the first formal demand after fully investigating the claim. This happens once medical treatment is complete or the full extent of damages is clear. The initial demand letter outlines the facts, liability, injuries, and a specific monetary figure to start discussions. This first number is often intentionally high, leaving room for negotiation. The defendant’s side will then respond with a much lower counter-offer, and the bargaining begins.