When you first began working and were offered group long term disability (LTD) insurance as part of your compensation package, you probably did not consider the potential pitfalls you would encounter if you had to file a claim. After all, LTD insurance is supposed to provide an additional income in conjunction with Social Security disability benefits, and who wouldn’t want to have a “safety net” in that regard?
When injured professionals are denied disability benefits, the reason for the denial is commonly unimportant. In these situations, they usually want the benefits they are entitled to. This is completely understandable from an individual's standpoint, and the feeling that an insurer should be held liable for denying benefits is understandable as well. However, if a lawsuit is initiated under ERISA, it is critical to understand the difference between legal remedies and equitable remedies.