How to Write a Lost Wage & Income Demand Letter

You need a lost wage and income demand letter to ask for monetary compensation for lost earnings related to injuries from an accident caused by another party. You typically send a lost wage and income letter to the insurance company of the other party. For example, you would send a demand letter to the auto insurance company providing coverage for a person who hit your car if the accident resulted in injuries to you and you missed time from work. A properly written demand letter improves your chances of getting back the earnings you lost.


Step 1

Make a list of the lost income and wages to get an accurate total. For example, if you lost 20 hours of work, multiply the 20 hours by your hourly pay rate. Estimate as accurately as possible for self-employment wages. Compare the same 20-hour span from previous weeks to get an average income. Make copies of supporting documents, such as pay-stubs or business activity reports.


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Step 2

Ask the treating physician for a letter stating the dates you could not work. Ask the physician to include possible future dates of missed work.

Step 3

Ask your employer for a lost wage and income statement if possible. Ask the employer to include how many hours lost and the total lost earnings.


Step 4

Describe the accident in the first section of the letter. Include what you were doing at the time, the accident itself and that the other party is at fault. State any outside facts that point to the other party being at fault, such as witness statements and police reports.

Step 5

Describe the medical treatments, pain you experienced and damage you suffered from the accident in the second section. Include medical terms. State the length of recovery and the injury's effects on everyday life.



Step 6

List the lost wages and income in the third part of the letter. Include the future lost wages estimation. Mention the physician's letter. Refer to the employer letter if you have one. Show how you calculated the total if you do not have an employer letter and refer to the supporting documents.


Step 7

State the monetary demand in the last section of the letter. Include the current and future lost wages, but round up to leave room for negotiation. Specify the demanded amount is only for lost income and wages.

Step 8

Sign the letter. Print your name underneath the signature. Attach any supporting documents to the back of the letter.


Contact a vocational rehabilitation professional for help if your lost wages involve a demotion or having to get a new type of job because of injuries or restrictions.


Do not admit any fault in the accident in the letter even if you may carry partial responsibility.

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