When people are denied long-term disability benefits, they quickly begin to fear for the worst. They imagine themselves dealing with mounds of paperwork and having to speak in front of a court full of people judging their every word. The idea of taking on an insurance company in court does not sound like an easy battle. The fact of the matter is, though, your long-term disability lawyer can make the paperwork much more manageable, and the chances you’d ever actually end up in court are very slim.
There are several reasons insurance companies avoid going to trial at all costs, and we’re going to cover a number of them here to help you understand why fighting for the benefits you deserve might be easier than you think.
A multi-billion dollar insurance company taking on a disabled person in court isn’t necessarily the best look for them. The idea of a company with that kind of power taking on a single person doesn’t sit well with the general public. Once people hear about an insurance company denying a person their disability benefits, word begins to travel fast. This news can be picked up by media outlets or go viral on social media very quickly, casting an unflattering light on an insurance company.
More often than not, people will side with the person rather than the insurance company, especially since most already hold an unfavorable view of insurance agencies. It’s crucial for insurers to uphold their reputation to the best of their ability to remain as trustworthy to the public as possible. Paying out an insurance policy far outweighs the possibility of losing hundreds of potential customers.
Resolving Claims Based on Economics
Going to trial is an expensive process. Just like any other major company, if not more so, their main goal as a business is always to maximize profits. Your insurance company will always look at your case as an economic decision; what actions will save them the most amount of money?
Insurance companies often conduct something called straight-line calculations to determine how much paying out LTD claims will cost them over the long term. More often than not, paying out benefits monthly over an extended period is going to cost them significantly more than paying out a lump sum (making a settlement). If you’re filing a lawsuit, your insurer must now account for both the cost of the trial process as well as the possibility of your benefits being reinstated.
Your insurer might have an in-house counsel on salary that theoretically increases the likelihood of going to trial because it’s already a part of their litigation budget. However, most often, in-house lawyers will hire a local council to assist in the trial, which increases their costs beyond what they originally budgeted for.
LTD Insurers and Risk Assessment
Insurance companies have been assessing risk for decades and have become experts of the process. Even if they initially decide to deny your claim, when they start to consider the risk factors that might come into play later, there’s a good chance they’ll end up resolving your case in a fair manner.
When an insurance company denies your claim, their hope is always that the situation ends there, and you do not pursue any further action. That is why appealing your denial, filing a lawsuit, or at least talking to an LTD lawyer is always the right decision. Just giving up when you are denied means the insurance company instantly wins. Putting up even a small fight drastically increases your chances of receiving some amount of relatively fair compensation with little effort, especially with our long-term disability lawyers on your side.
LTD Lawyers and Risk Assessment
As much as your insurance company understands risk, an experienced LTD lawyer understands the situations just the same if not better with the number of cases they’ve played a part in.
Sometimes, but rarely, we come across something we call a “white case,” where the outcome is clearly visible, and we know there’s a very high chance of winning. Other times we find ourselves assessing “black cases” in which we can easily determine that the plaintiff is attempting some degree of fraud by being deceptive with us and lying about the particulars of their situation. Either one of these scenarios rarely happen, but they are known to exist.
97% of the cases we see are considered “grey cases”. This means that the outcome isn’t 100% clear, but due to our many years of experience, we have an excellent understanding of how any case is likely to play out and what a judge or jury is expected to do. Understanding your risk factor is essential to handling your case in the best manner possible, or in other words, getting you the most amount of money possible based on your chances of winning.
When you use a lawyer who doesn’t specialize in LTD cases, they don’t have the same in-depth understanding as we do. This means they likely don’t have the same sense of where your case falls on the greyscale. Without that understanding of your risk factor, your case could be mishandled.
When asking for a settlement, the likelihood of winning plays a significant factor in how much you should ask for. Asking for the full settlement amount with a weak case can look bad on the lawyers and the plaintiff and result in a worse outcome than just asking for a reasonable amount from the get-go.
Offsets and Risk Reduction
At first glance of your case, it may look to insurance agencies that they could be paying you thousands of dollars per month for near life. However, our LTD lawyers can help you find all the additional LTD benefits you’re likely eligible for to help reduce your LTD insurer’s exposure. This means that by applying for LTD benefits from other sources (CPP-D, WCB, etc.), your insurance agency will have to pay less per month themselves by having their costs reduced by the other areas. Being approved for these benefits will reduce the risk you pose on your insurer and can help push your insurance company to agree to reinstate your claim or make a very fair settlement offer.
Bad Faith Claims
Bad faith claims exist when an insurance provider is thought to be acting in an unacceptable, unprofessional, or harmful way to the claimant. Rather than having their behavior exposed to the public, an insurance provider will quickly settle a claim to avoid it being taken to trial. When a bad faith claim is involved, they’re likely to give you a little extra to make you happy without trial. Plus, bad faith claims could lead to them paying for punitive damages and costing them even more money.
If you think your insurance company wrongfully denied your claim and acted in bad faith, there’s an excellent chance our lawyers can get you a very fair settlement.
When a case is taken to trial, it’s usually lined with unusual circumstances. Unusual facts about a person’s history that damages their credibility or surveillance that goes against a plaintiff’s claims are generally the reasons behind going to trial. These situations can be more complicated, which is why our lawyers work hard to understand everything about your case to make sure absolutely all of our bases are covered before we make it to trial.
Why You need a Specialized Lawyer for your LTD Claim
When filing a lawsuit, you need the best person for the job for the best chances of winning. Let’s put it this way; you wouldn’t want a General Practioner to perform your heart surgery. You’d only trust a heart surgeon to do the job. When it’s a matter of life and death, which sometimes being denied the benefits you need to afford to live sometimes can be, you need the lawyer who specializes in what your case is about.
Our Halifax long-term disability lawyers have the knowledge and experience to look after your case from A to Z. You can contact us today for your free consultation to start your battle for the benefits you deserve.