FAQs

It is common for LTD claimants to feel angry, frustrated, disrespected, and mistreated by the insurer that has denied their benefits. They may feel strongly about suing the insurer not only for the denied benefits but for additional damages intended to ‘punish’ the insurer for harsh, harmful or egregious conduct in the way it has handled the claim. Those additional damages are commonly referred to as ‘punitive damages’.

However, our courts rarely award punitive damages in LTD insurance cases. This is because of laws relating to contracts. Even if they seem wrong, insurer's actions generally do not rise to the level required for punitive damages. Moreover, insurers will rarely, if ever, pay punitive damages as part of a settlement of a long-term disability insurance claim.