Short-Term Disability for Mental Health Conditions in Canada

Short-term disability (STD) benefits are not limited to physical injuries or illnesses. In Canada, mental health conditions can also qualify for short-term disability when symptoms prevent you from working.

Despite this, mental health–related STD claims are frequently questioned, delayed, or denied by insurers.

This guide explains how short-term disability works for mental health conditions in Canada, what insurers look for, and why these claims are often challenged.

Can Mental Health Conditions Qualify for Short-Term Disability?

Yes.

Mental health conditions can qualify for short-term disability if they prevent you from performing your job duties, even if there are no visible symptoms.

STD claims may be approved for conditions such as:

• depression
• anxiety disorders
• panic disorder
• PTSD
• burnout or work-related stress
• adjustment disorders

The key issue is functional impairment, not the diagnosis alone.

How Insurers Assess Mental Health STD Claims

Insurers do not approve mental health claims simply because a condition exists. They focus on whether symptoms interfere with work-related functioning.

Common areas insurers assess include:

• concentration and focus
• decision-making ability
• emotional regulation
• sleep disruption
• ability to interact with others
• stress tolerance

Claims are evaluated against your actual job duties, not a generic role.

Why Mental Health STD Claims Are Denied More Often

Mental health–related STD claims are denied at higher rates because insurers often argue there is:

• insufficient medical evidence
• no “objective” proof
• inconsistency between symptoms and daily activity
• a belief that the condition is temporary or manageable

Unlike many physical injuries, mental health conditions often rely on clinical judgment rather than imaging or lab tests.

Medical Evidence for Mental Health STD Claims

Strong medical evidence is critical for mental health–related STD claims.

Evidence may include:

• clinical notes from a family doctor or psychiatrist
• therapy or counselling records
• medication history
• documented functional limitations
• treatment plans and follow-up notes

Insurers look for consistency over time, not just a one-time note.

Diagnosis vs Functional Limitations

A diagnosis alone is rarely enough.

Insurers focus on questions like:

• Can you concentrate for sustained periods?
• Can you manage deadlines or decision-making?
• Can you interact appropriately at work?
• Does stress worsen symptoms?

Medical evidence should connect symptoms directly to job performance.

Can Stress or Burnout Qualify for Short-Term Disability?

Sometimes.

Stress or burnout may qualify for STD if it is:

• medically diagnosed
• supported by treatment
• causing clear functional impairment

Insurers often scrutinize these claims closely and may argue that workplace stress alone does not qualify.

Surveillance and Mental Health Claims

Mental health STD claims are especially vulnerable to:

• surveillance
• social media reviews

Insurers may attempt to use everyday activity to argue that symptoms are exaggerated or inconsistent.

Surveillance does not override medical evidence, but it is often cited when benefits are cut off early.

What Happens When Mental Health STD Benefits End?

Mental health STD benefits end for the same reasons as other claims:

• maximum benefit period reached
• insurer decides you no longer meet the definition of disability

Ending STD benefits does not mean you are medically fit to work.

What If a Mental Health STD Claim Is Denied?

Mental health STD denials are common — and often contested.

If your claim is denied or cut off:

• you may still have options
• timelines matter
• next steps can affect long-term disability eligibility

Key Takeaway

Mental health conditions can qualify for short-term disability in Canada, but these claims are often examined more closely than physical injury claims.

Clear medical evidence, consistent treatment, and documentation of functional limitations play a major role in whether benefits are approved or continued.

Understanding how insurers evaluate mental health STD claims can help you avoid common pitfalls.