How To Respond Premises Liability Demand Letter

Published: December 4, 2025 • Demand Letters
Responding to Premises Liability Demand Letters
Defense strategy for property owners and businesses

You received a slip and fall demand letter: When a customer, tenant, or guest sends a demand letter claiming they were injured on your property, you need to respond strategically. Ignoring the letter can result in litigation, adverse inference, and increased liability exposure. Admitting fault or making unguarded statements can waive insurance coverage and create unnecessary liability.

This guide walks through the first 48-72 hours after receiving a premises liability demand letter, liability analysis, insurance notification, evidence preservation, and strategic response options. Whether you’re a store owner, landlord, property manager, or small business owner, these steps protect your interests and minimize exposure.

I advise property owners and businesses on responding to demand letters. This page covers general U.S. defense strategy. For California-specific issues, consult California-focused resources or legal counsel familiar with California premises liability law.

First 48-72 hours: What NOT to do

The first few days after receiving a demand letter are critical. Missteps during this period can create liability, waive insurance coverage, or destroy evidence.

What NOT to do
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Do NOT admit fault or liability
Do not apologize, admit negligence, or acknowledge fault in writing or verbally. Admissions can waive insurance coverage and establish liability.
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Do NOT contact claimant directly if represented
If demand letter is signed by an attorney, you cannot contact claimant directly. Doing so violates ethical rules and can result in sanctions.
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Do NOT destroy evidence
Do not delete video, throw away inspection logs, repair the hazard without documenting, or discard any evidence. Spoliation can result in adverse inference or sanctions.
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Do NOT make settlement offers without insurer consent
Most liability policies prohibit voluntary payments or settlement without insurer’s consent. Paying out-of-pocket can waive coverage.
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Do NOT threaten or retaliate
If claimant is a tenant, employee, or customer, do not threaten eviction, termination, harassment, or negative reviews. Retaliation can result in additional claims.
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Do NOT ignore the letter
Ignoring demand letters does not make them go away. Silence can result in litigation, spoliation sanctions, and increased liability exposure.
Critical warning: Do not make any written or verbal statements to the claimant, their attorney, or anyone else about the incident without consulting your insurer or attorney first. Even well-intentioned apologies can be used as admissions of liability.
What TO do immediately
1
Read the demand letter carefully
Note date of incident, location, description of hazard, injuries claimed, and demand amount. Identify all named parties (you, your company, property manager, contractors).
2
Notify your liability insurer immediately
Call your commercial general liability (CGL), landlord, or homeowners insurance carrier within 24-48 hours. Provide copy of demand letter. Late notice can jeopardize coverage.
3
Preserve all evidence
Immediately secure surveillance video, incident reports, sweep logs, employee schedules, maintenance records, and any physical evidence. Do not repair hazard without photographing first.
4
Locate and review your records
Find incident report (if any), employee statements, maintenance logs, prior complaints, and any documentation about the area where claimant fell.
5
Interview witnesses and employees
Speak to any employees who were present, responded to the fall, or have knowledge of the area or hazard. Document their accounts in writing immediately (memories fade).
6
Photograph current conditions
Take photos of the area where fall occurred, showing current conditions, any warning signs, lighting, handrails, floor surfaces, etc.
Timeline pressure: Most demand letters give 30-day deadlines for response. However, insurance investigation and liability analysis take time. Notify your insurer immediately so they can begin investigation and coordinate response.
Insurance notification: Critical first step

Most property owners and businesses have liability insurance that covers slip and fall claims. Timely notice to your insurer is essential—late notice can result in denial of coverage.

Types of liability insurance
Policy Type Who Has It What It Covers
Commercial General Liability (CGL) Businesses, stores, restaurants Bodily injury on business premises, products liability, advertising injury
Landlord / Rental Property Insurance Landlords, property owners Tenant and guest injuries on rental property, property damage
Homeowners Insurance Homeowners Liability for injuries on homeowner’s property (guests, visitors)
Umbrella / Excess Liability Property owners, businesses with high exposure Additional coverage above CGL or homeowners limits
Notice requirements: Most liability policies require “prompt” or “immediate” notice of claims or potential claims. Some policies specify deadlines (e.g., within 10 days). Check your policy and notify insurer within 24-48 hours of receiving demand letter.
How to notify your insurer
1
Find your policy and claims contact
Locate your CGL, landlord, or homeowners policy. Find the claims reporting number or contact (usually on policy declarations page or carrier website).
2
Call and report the claim
Call insurer’s claims department. Provide date of incident, brief description of what happened, and that you received a demand letter. Request claim number.
3
Send written notice with demand letter
Follow up phone call with written notice (email or certified mail) attaching copy of demand letter and any incident reports or documentation you have.
4
Get claims adjuster assignment
Insurer will assign claims adjuster to investigate. Get adjuster’s name, phone, and email. Adjuster will request additional information and documentation from you.
5
Cooperate with investigation
Provide requested documents, incident reports, photos, employee statements, maintenance records, etc. Cooperation is required under most policies.
Checking for additional insured and indemnity coverage

Multiple parties may share liability and insurance obligations:

  • Landlord vs tenant: If you lease property, check lease for indemnity provisions and whether landlord or tenant is responsible for premises maintenance. Landlord may be additional insured on tenant’s policy (or vice versa).
  • Property manager: If property manager handles maintenance, they may have separate liability policy and may be obligated to indemnify you.
  • Contractors: If janitorial, landscaping, snow removal, or other contractors were responsible for maintaining the area where claimant fell, they may share liability. Check contracts for indemnity and additional insured provisions.
  • Umbrella policies: If claim exceeds your primary policy limits, check whether you have umbrella or excess liability coverage.
Tender to other parties: If other parties (contractors, property managers, landlords/tenants) share liability, notify them of the claim immediately and request they notify their insurers. This is called “tendering” the claim and is essential for preserving indemnity and additional insured rights.
Liability analysis: Evaluating the claim

Once evidence is preserved and insurer is notified, analyze liability. Not all slip and fall claims have merit. Many can be defended successfully based on lack of notice, comparative negligence, or absence of dangerous condition.

Key liability questions
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Did we have notice?
Did you or your employees create, know about, or should have known about the hazard through reasonable inspections? No notice = no liability in most states.
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Was there a dangerous condition?
Was condition actually dangerous, or was it open and obvious? Minor imperfections (small crack, slight unevenness) may not be legally dangerous.
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Did we warn or protect?
Were warning cones, caution tape, or signs present? Did we barricade or restrict access? Warnings can satisfy duty even if hazard not fixed.
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Was claimant at fault?
Was claimant distracted (phone, talking, looking away)? Ignoring warnings? Wearing inappropriate footwear? Intoxicated? Comparative negligence reduces or bars recovery.
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What does video show?
Surveillance video can be your best evidence. Does it show claimant was distracted? That hazard was not obvious? That employees were unaware?
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Are injuries credible?
Do claimed injuries match mechanism of fall? Are medical records consistent? Treatment gaps or pre-existing conditions suggest lower damages or defense.
Defenses to premises liability claims
  • No notice: You did not create, know about, or have reason to know about the hazard. Lack of notice bars liability in most states.
  • No dangerous condition: Condition was not actually dangerous, was a minor imperfection, or was within normal tolerances.
  • Open and obvious: Hazard was so obvious that claimant should have seen and avoided it. Open and obvious doctrine bars or reduces recovery in many states.
  • Adequate warning: You provided adequate warning (cones, signs, tape, barriers) even if hazard was not immediately repaired.
  • Comparative negligence: Claimant was distracted, ignoring warnings, intoxicated, or otherwise at fault. Reduces or bars recovery depending on state’s comparative fault rules.
  • No causation: Hazard did not cause fall (e.g., claimant tripped on own feet, had medical episode, slipped on something they brought onto property).
  • Reasonable inspections: You had reasonable inspection and maintenance procedures, and hazard appeared immediately before fall (no time to discover or fix).
Surveillance video is critical: If you have security cameras, review footage immediately. Video can definitively show whether hazard was visible, how claimant fell, whether they were distracted, and whether employees were aware. Video often makes or breaks liability.
Evaluating damages

Even if liability is questionable, evaluate claimant’s claimed damages:

  • Injury severity: Fractures, surgery, permanent disability = high damages. Sprains, strains, soft tissue = moderate. Bruises only = minimal.
  • Medical treatment: ER, specialists, surgery, PT = substantial bills. Urgent care or PCP only = lower bills. No treatment or long gaps = weak claim.
  • Pre-existing conditions: Do medical records show prior injuries to same body part? Pre-existing conditions reduce damages (you’re only liable for aggravation, not pre-existing condition).
  • Lost wages: Do they have employer letter and pay stubs? Self-employed claims are harder to verify. No lost wages if they continued working.
  • Plaintiff credibility: Prior personal injury claims? Criminal history? Social media showing activities inconsistent with claimed injuries? Credibility affects settlement value.
Request complete medical records: Do not rely on demand letter’s summary of injuries. Request complete medical records, billing, and wage documentation before making settlement decisions. Demand letters often exaggerate injuries or omit pre-existing conditions.
Evidence preservation: Avoiding spoliation sanctions

Once you receive a demand letter, you have a legal duty to preserve evidence relevant to the claim. Destroying evidence (even inadvertently) can result in adverse inference, sanctions, or default judgment.

Evidence you must preserve
  • Surveillance video: All security camera footage from cameras covering the incident area, from several hours before through several hours after the fall. Copy to external drive or cloud storage immediately (video often overwrites within 7-90 days).
  • Incident reports: Any reports filed by employees, managers, or security about the incident.
  • Sweep and inspection logs: Paper or electronic logs showing when employees inspected or cleaned the area where claimant fell.
  • Maintenance records: Work orders, repair invoices, contractor agreements, janitorial schedules related to the hazard or area.
  • Employee schedules: Who was working at time of incident? Who was assigned to maintain the area?
  • Prior complaints: Customer/tenant complaints about same hazard or location, internal memos about needed repairs.
  • Photos and physical evidence: Photos of scene, hazard (if not yet repaired), warning signs. Preserve broken equipment, defective mats, etc.
  • Training materials: Employee safety training, hazard identification protocols, spill response procedures.
Do not repair hazard without documenting first: If hazard still exists, photograph it thoroughly from multiple angles before repairing. Measure stairs, cracks, or gaps. Repairing without documenting can be seen as spoliation or consciousness of guilt.
How to preserve evidence
1
Immediately copy surveillance video
Download or copy video to external drive, cloud storage, or multiple locations. Do not rely on recording system—video often overwrites within days/weeks.
2
Secure paper records
Gather all paper logs, incident reports, work orders, invoices. Make copies and store originals in secure location.
3
Issue litigation hold
Send written instruction to all employees, contractors, property managers prohibiting destruction of any documents, emails, texts, or records related to incident. Include date/time/location of fall.
4
Notify IT to preserve electronic records
If you have electronic maintenance logs, email correspondence, or digital records, notify IT department to preserve and not delete.
5
Photograph hazard and scene before repairs
Take extensive photos showing hazard, surrounding area, lighting, warning signs (or lack thereof), handrails, floor surfaces. Measure and document before repairing.
Spoliation consequences: If you destroy evidence after receiving demand letter, claimant can ask court for adverse inference instruction (jury will be told to assume destroyed evidence was unfavorable to you), sanctions (monetary penalties), or even default judgment in extreme cases.
Response strategy options

After notifying insurer, preserving evidence, and analyzing liability, you (or your insurer) must decide how to respond to the demand letter. Response options range from outright denial to settlement negotiation.

Response option 1: Outright denial

When to use: Strong liability defenses (no notice, no dangerous condition, open and obvious, comparative negligence bars recovery), minimal injuries, or no credible evidence.

What it looks like:

  • Written response denying all liability and rejecting demand
  • Cite specific defenses: lack of notice, no dangerous condition, comparative fault, failure to prove causation
  • Attach supporting evidence: surveillance video stills, sweep logs, photos showing no hazard or adequate warnings
  • Reserve all rights and defenses, note willingness to defend in litigation if claimant files suit
Denial risks: Outright denial may push claimant to file lawsuit. However, if liability is weak, denial is often the right strategy. Many claimants with weak cases will not file suit if you deny credibly.
Response option 2: Information-gathering response

When to use: Liability is uncertain, injuries are not fully documented, or you need more information to evaluate the claim.

What it looks like:

  • Acknowledge receipt of demand letter
  • Request additional documentation: complete medical records (not just summaries), itemized billing, EOBs, wage loss verification, incident photos, witness statements
  • Do not admit or deny liability yet—state investigation is ongoing
  • Reserve all rights and defenses
  • Set timeline for claimant to provide requested documents (e.g., 30 days)
Buying time: Information-gathering responses allow you to evaluate claim more thoroughly before committing to settlement or denial. Claimant may also lose interest or accept lower settlement if process drags on.
Response option 3: Settlement negotiation

When to use: Liability is clear or disputed but risky, injuries are substantial, and settlement is cheaper than litigation defense costs.

Settlement considerations:

  • Defense costs: Even if you win at trial, litigation costs (attorney fees, expert witnesses, discovery) can exceed nuisance settlement value.
  • Nuisance value: For weak claims with minimal injuries, offering $2,500-$10,000 to settle may be cheaper than defending (which can cost $20K-$50K+).
  • Policy limits exposure: If injuries are severe and liability is clear, settlement may be necessary to avoid excess verdict beyond policy limits.
  • Comparative fault: If liability is disputed (e.g., claimant was 40% at fault), negotiate reduced settlement reflecting comparative fault.
Insurer consent required: Most liability policies prohibit voluntary payments or settlement without insurer’s consent. Do not offer or pay settlement without insurer approval, or you risk losing coverage.
Response option 4: Med-pay offer

When to use: Injuries are minor, liability is uncertain, and you want to resolve claim quickly without admitting fault.

What is med-pay: Many CGL and homeowners policies include medical payments coverage (usually $1,000-$5,000) that pays claimant’s medical bills regardless of fault. Med-pay is not an admission of liability.

  • Offer to pay claimant’s medical bills up to med-pay limit (e.g., $5,000)
  • Require claimant to sign full release of all claims
  • No admission of liability—med-pay is “no-fault” coverage
  • Quick, low-cost resolution for minor injury claims
Med-pay advantages: Resolves claim quickly, avoids litigation, and costs you nothing (covered by insurance). Works well for minor injuries where liability is disputed.
Timing and deadline considerations

Most demand letters include 30-day deadlines for response. However, these deadlines are not legally binding (unless contractually required). You can respond on your own timeline.

  • Acknowledge receipt: Send brief acknowledgment within a few days stating you received demand and are investigating. This shows you’re not ignoring claim.
  • Request extension if needed: If insurer investigation takes longer than 30 days, request extension (most claimants will agree to 60-90 days).
  • Do not rush to settle: Take time to evaluate liability, review all evidence, and get insurer’s input. Hasty settlements often overpay.
  • But do not ignore: Even though deadline is not binding, ignoring demand entirely can lead to litigation, spoliation sanctions, or adverse inference.
When to hire outside counsel

Most premises liability claims are handled by your insurer’s claims adjuster and in-house or panel counsel. However, some cases warrant retaining outside counsel early:

When to consider outside counsel
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High damages / policy limits exposure
Severe injuries, surgery, permanent disability, or death. Claim may exceed your policy limits, creating personal liability exposure.
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Complex liability issues
Multiple potentially liable parties, indemnity disputes, additional insured issues, or unusual legal theories.
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Government claims
Claims against municipalities, schools, or public entities involve complex procedural requirements and sovereign immunity issues.
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Criminal acts / security failure
Claimant alleges assault, rape, or robbery due to inadequate lighting or security. These cases carry high damages and reputational risk.
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Coverage disputes
Insurer denies coverage, asserts policy exclusions, or reserves rights. You may need independent counsel to protect your interests vs insurer.
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Bad faith risk
Clear liability, severe injuries, policy limits demand. Insurer’s failure to settle within limits can expose you to bad faith liability.
Excess liability: If claimant’s injuries clearly exceed your policy limits (e.g., $1M claim, $300K policy), you have personal exposure for any verdict above limits. Hire personal counsel immediately to protect your interests separate from insurer’s interests.
Defense counsel vs personal counsel
Counsel Type Who Pays Who They Represent
Defense counsel (appointed by insurer) Insurer pays You (the insured), but insurer controls litigation strategy and settlement authority. Conflict of interest may arise if policy limits at risk.
Personal counsel (your own attorney) You pay You exclusively. No conflict with insurer. Advises on excess exposure, bad faith claims, and protecting your personal assets.
When insurer appoints counsel: If lawsuit is filed, your insurer will appoint defense counsel to represent you (at insurer’s expense). You have a right to participate in your defense and to be informed of all settlement offers and litigation strategy.
Received a premises liability demand letter?
I advise property owners and businesses on responding to slip and fall claims.
Email: owner@terms.law
Frequently asked questions

No. The 30-day deadline in most demand letters is not legally binding (unless you have a contract requiring response within specific timeframe). You can respond on your own timeline.

However:

  • Acknowledge receipt promptly (within a few days) to show you’re not ignoring the claim
  • Request extension if you need more time to investigate (most claimants will agree to 60-90 days)
  • Do not ignore demand entirely—this can lead to litigation and adverse inference

Strategy tip: Taking time to thoroughly investigate and gather evidence often strengthens your defense and reduces settlement pressure.

No. Do not apologize, either verbally or in writing. Even well-intentioned apologies can be used as admissions of fault.

Why apologies are dangerous:

  • “I’m sorry” can be interpreted as admission you were negligent
  • Admissions can waive insurance coverage (policies often exclude voluntary admissions of liability)
  • Apologies can establish liability in court (used as evidence of fault)

What you can say: Express concern for their well-being (“I hope you’re okay”) without admitting fault or apologizing. Better yet, say nothing and let your insurer handle all communications.

No. If the demand letter is signed by an attorney, you cannot contact the claimant directly. Attorney ethics rules prohibit contact with represented parties without their attorney’s consent.

Consequences of improper contact:

  • Claimant’s attorney can move to exclude any statements you obtain
  • Your own attorney (if you have one) can face discipline for allowing improper contact
  • Can result in sanctions or adverse inference at trial

If claimant contacts you: Politely refer them to your insurer or attorney. Do not discuss the incident or respond to questions.

If you have no liability insurance, you are personally responsible for defending the claim and paying any settlement or judgment. This creates significant financial risk.

Steps if uninsured:

  • Consult an attorney immediately: Hire personal injury defense attorney to evaluate claim and advise on response strategy
  • Gather evidence: Preserve surveillance video, sweep logs, witness statements to build defense
  • Consider settlement: If liability is clear and injuries substantial, early settlement (even costly) may be cheaper than defending lawsuit and risking six-figure judgment
  • Asset protection: Consult with attorney about protecting personal assets (home, savings) from judgment

Future: Obtain liability insurance (CGL, landlord, or homeowners) immediately to protect against future claims.

Yes, in two situations:

1. Judgment exceeds policy limits: If jury awards $1 million and your policy limit is $300,000, you are personally liable for the $700,000 excess.

2. Insurer denies coverage: If insurer successfully asserts policy exclusion or you violated policy terms (e.g., late notice, failure to cooperate), you may have no coverage and be personally liable.

Protecting yourself from excess liability:

  • Purchase adequate liability limits (consider umbrella policy for additional coverage)
  • If claim approaches policy limits, hire personal counsel to monitor insurer’s handling
  • Consider demanding insurer settle within limits to avoid bad faith exposure
  • If insurer refuses reasonable settlement within limits, you may have bad faith claim against insurer for excess judgment

No. Most states prohibit retaliatory eviction when tenant asserts legal rights, including premises liability claims.

Retaliation is illegal and creates additional liability:

  • Eviction, lease non-renewal, rent increase, or harassment shortly after tenant sends demand letter is presumed retaliation
  • Tenant can sue for wrongful eviction, emotional distress, and attorney fees
  • Courts may order reinstatement, damages, and punitive damages

What you CAN do:

  • Defend the premises liability claim on its merits
  • If tenant violates lease (nonpayment, unauthorized occupants, damage), you can evict for those reasons—but document legitimate reasons carefully to rebut retaliation claims
  • At lease expiration, you can choose not to renew (but courts may still presume retaliation if timing is close to demand letter)

Best practice: Treat tenant normally, continue normal landlord-tenant relationship, and let your insurer handle the injury claim separately from tenancy issues.

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