Avoiding pitfalls in long-term disability claims

▤ Summary

Ideally, the management of an injured employee’s return to work should be a collaborative process between employer, long-term disability carrier, and employee. Unfortunately, once an employee is injured and in receipt of disability benefits, misconceptions regarding the parties’ respective roles can expose them to increased risk and liability. Frustration of contract is a fact driven analysis that will take into account the nature of the worker’s position, disabilities, and the employer’s meaningful steps to accommodate. However, an insurer’s denial of benefits may be a good time for an employer to seriously consider instituting a formal return to work program with relevant checkpoints and milestones. The overlap of contractual, statutory and common law obligations between the three parties make the management of long-term disability claims particularly complex.

▦ Linked Companies

First Reference

$1M to $5M