What is a compensation claim letter?

A letter of request for compensation is usually done via a formal document. It contains information such as the details of the person who has been negatively affected by or impacted because of an incident (i.e damage or loss) and details of the person responsible for the casualty event. The purpose of this letter is to ask the responsible person to pay a certain amount of money for the damages caused. It is important to know how to write a compensation claim letter to ensure a smoother claims process.

These letters can also be used in logistics and transportation or supply chain industries. However, these are not transportation documents.

Compensation claims letters are not the same as letters of indemnity.

How to write a claim letter?

Although you may be able to submit your letter to a representative in customer service, you should also send a copy of it to the head or executive team of the company you are claiming from.

  1. Gather all the information that can help you in the cause.
    • If you intend to claim for damages, you must have the evidence to prove it.
    • You must indicate the date, time, place, and names of the people who witnessed it.
    • Specify the terms of the contract in your letter to apply for compensation to clearly illustrate the responsibility of the party and how it was not met
  2. Based on the information available to you, describe what happened in your claim for compensation and make a specific request. If the purpose of your letter to seek compensation is to get a certain amount of money, request it and explain your reasons appropriately.
  3. When seeking compensation for damages or lost goods, you should express your intention to contact an attorney if they do not resolve your claim for compensation within a reasonable period of time.
  4. Finish your letter to ask for compensation and provide your full details which should include your first and last name, country of residence, mailing address, preferred email, and contact numbers.
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