Why do attorneys send policy-limits demands before filing a Georgia lawsuit?

· 3 min read

A policy-limits demand sent before suit is a strategic move that can resolve a claim quickly and, if the insurer refuses, set up a larger recovery later. The demand asks the carrier to pay the full available coverage in exchange for a release, and Georgia law gives that request real teeth when the insurer mishandles it.

Settling within limits, fast

When injuries clearly exceed the available coverage, the cleanest outcome for an injured person is often the full policy limits paid without the delay and cost of litigation. A pre-suit demand offers the insurer exactly that bargain. For motor-vehicle claims, O.C.G.A. § 9-11-67.1 governs how these demands are made, requiring a written offer with material terms, a documented delivery method, and an acceptance window of at least 30 days. A carrier that accepts ends the matter; the claimant collects the limits and signs the agreed release.

Creating leverage if the insurer refuses

The second reason is the leverage a properly made demand creates. An insurer owes duties to its own insured driver to handle settlement reasonably. If a carrier rejects a fair within-limits demand and the case later produces a judgment above the policy limits, the insurer may face exposure for the excess based on its failure to settle when it could have. A clean, statute-compliant demand documents that the insurer had a genuine chance to protect its insured for the limits and declined. That record is what can later support a claim for the amount over the limits.

This dynamic explains the care attorneys put into these letters. The value is not only in the immediate offer but in building a clear record:

  • A written, properly delivered offer with all material terms.
  • A reasonable deadline that gives the carrier a fair chance to accept.
  • Clarity on release, payment, and the parties involved.

Protecting the client either way

Because the demand is structured to be accepted, a cooperating insurer can pay and close, which serves the client immediately. Because it is also structured to be enforceable and well-documented, a refusing insurer hands the claimant a stronger position if litigation follows. The approach lets the claimant pursue prompt payment while preserving the path to more if the carrier squanders the opportunity.

The bottom line

Attorneys send policy-limits demands before filing because the move can capture the full coverage quickly and, failing that, can expose an insurer that unreasonably refuses a fair within-limits offer to liability beyond its policy. Following Georgia’s statutory requirements for motor-vehicle demands is what gives the letter both its settlement power and its later evidentiary weight.

This article is for general educational and informational purposes only and is not legal advice. It does not create an attorney-client relationship, and Georgia law may change. For advice about a specific situation, consult a licensed Georgia personal injury attorney.

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