Short-Term Disability Denied in Canada: What to Do Next

If your short-term disability (STD) benefits were denied or cut off early, you’re not alone. Across Canada, insurers regularly deny STD claims — often citing vague reasons like “insufficient medical evidence” or claiming you’re still able to work.

A denial does not automatically mean the insurer is right. In many cases, employees still have options.

This guide explains why short-term disability claims are denied in Canada, what steps you can take next, and when legal help may be needed.

Why Are Short-Term Disability Claims Denied?

Insurance companies deny STD claims for many reasons, including:

• claims of insufficient or “inconclusive” medical evidence
• assertions that you can still perform your job duties
• surveillance or reviews of social media activity
• missed deadlines or incomplete paperwork
• disputes over diagnosis, treatment, or recovery timelines

Insurers assess whether you meet the policy’s definition of disability, which often focuses on your ability to work — not simply whether you have a medical condition.

Common STD Denial Tactics to Watch For

Some insurers use tactics that can catch claimants off guard, such as:

• requesting repeated medical forms without clear explanation
• demanding “objective evidence” when it may not exis
• scheduling frequent check-ins that worsen symptoms
• cutting off benefits just before the maximum STD period ends

These tactics don’t necessarily mean your claim is invalid.

What Should You Do If Short-Term Disability Is Denied?

If your STD benefits are denied or stopped, take action quickly.

1. Get the Reason for the Denial in Writing

You have the right to know why benefits were denied and which policy terms were relied on.

2. Review Your Medical Evidence

Denials often hinge on medical documentation. In many cases, evidence can be clarified or strengthened.

3. Do Not Assume You Must Return to Work

Being denied STD does not mean you are medically fit to work.

4. Watch the Clock

Appeal deadlines and benefit timelines matter. Delays can limit your options.

Can You Appeal a Denied Short-Term Disability Claim?

Some STD plans allow internal appeals, but appealing is not always the best option.

Appeals:

• are handled by the same insurer that denied you
• may delay access to other benefits
• can affect later long-term disability (LTD) claims

Before appealing, it’s important to understand how your STD denial could impact your next steps.

What Are Your Options After an STD Denial?

Depending on your situation, you may still be able to:

• apply for EI sickness benefits
• transition to long-term disability (LTD)
• challenge the insurer’s decision
• pursue compensation through legal action

Choosing the wrong path can weaken future claims — especially LTD claims.

What If Your STD Benefits Were Cut Off Early?

Some STD claims are approved initially, then cut off before the maximum benefit period ends.

This often happens when insurers:

• claim you’ve “recovered enough”rely on surveillance
• reinterpret medical reports

Early termination is treated much like a denial — and can often be challenged.

How STD Denials Affect Long-Term Disability Claims

Many STD claims are meant to transition into LTD.

A denied STD claim can:

• delay or derail an LTD application
• be used by insurers to argue you’re not disabled
• create gaps in income if not handled properly

If an insurer has already denied ongoing disability benefits, learn what to do next in our guide to long-term disability denied in Canada.

Does a Short-Term Disability Denial Mean You Must Return to Work?

No.

An insurer’s decision does not override your doctor’s medical advice. Returning to work against medical advice can put your health — and future disability claims — at risk.

Key Takeaway

Short-term disability denials are common in Canada, but many are not justified. Understanding why your claim was denied — and what options remain — is critical, especially if long-term disability may be involved.