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.
The first few days after receiving a demand letter are critical. Missteps during this period can create liability, waive insurance coverage, or destroy evidence.
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.
| 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 |
Multiple parties may share liability and insurance obligations:
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.
Even if liability is questionable, evaluate claimant's claimed damages:
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.
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.
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:
When to use: Liability is uncertain, injuries are not fully documented, or you need more information to evaluate the claim.
What it looks like:
When to use: Liability is clear or disputed but risky, injuries are substantial, and settlement is cheaper than litigation defense costs.
Settlement considerations:
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.
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.
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:
| 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. |
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:
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:
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:
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:
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:
No. Most states prohibit retaliatory eviction when tenant asserts legal rights, including premises liability claims.
Retaliation is illegal and creates additional liability:
What you CAN do:
Best practice: Treat tenant normally, continue normal landlord-tenant relationship, and let your insurer handle the injury claim separately from tenancy issues.