Does Policy Type (ERISA vs. Non-ERISA) Matter in a Lawsuit Against The Standard?
Yes—the type of disability insurance policy you have can dramatically affect your lawsuit against The Standard Insurance Company. Whether your claim is governed by ERISA or non-ERISA (individual or private) law determines your legal rights, the evidence you can use, the court you’re in, and your chances of success.
At DarrasLaw, we have represented thousands of disability claimants nationwide and routinely litigate claims against The Standard under both ERISA and non-ERISA frameworks. Understanding which type of policy applies is one of the most important first steps in building a winning case.
What Is the Difference Between ERISA and Non-ERISA Disability Policies?
ERISA Disability Policies
ERISA (the Employee Retirement Income Security Act of 1974) applies to most employer-provided group disability insurance plans.
If your disability coverage was:
- Provided through your employer
- Paid for partially or fully by your employer
- Offered as part of an employee benefits package
…it is likely governed by ERISA.
Non-ERISA Disability Policies
Non-ERISA policies are typically:
- Individual disability insurance policies
- Employer plans where the employer has fully opted out of ERISA
- Policies purchased directly from The Standard without employer involvement
- These policies are governed by state insurance and contract law, not federal ERISA law.
Why Policy Type Matters When Suing The Standard
1. Your Legal Rights Are Significantly Different
Under ERISA:
- You cannot sue for bad faith
- You cannot recover punitive damages
- You cannot obtain compensation for emotional distress
- Recovery is usually limited to wrongfully denied benefits
Under Non-ERISA law:
- You may sue for insurance bad faith
- You may recover punitive damages
- You may recover extra-contractual damages
- You often have greater leverage in settlement negotiations
This distinction alone can determine the value and strategy of your case against The Standard.
2. The Evidence Rules Are Completely Different
ERISA lawsuits are decided almost entirely on the “administrative record.”
That means:
- No new evidence can usually be added after the appeal
- No depositions of The Standard’s claim handlers
- No jury
- No trial testimony
If critical medical evidence is missing before the final appeal, it is usually lost forever.
By contrast, non-ERISA cases allow:
- Discovery
- Depositions
- Live testimony
- Jury trials
- Introduction of new evidence
This gives claimants far more opportunity to expose unfair claim practices by The Standard.
3. The Standard Has More Power Under ERISA
In many ERISA cases, The Standard:
- Acts as both claims administrator and payer
- Receives judicial deference if the policy grants discretionary authority
- Can rely on file-review doctors instead of examining physicians
Federal courts often apply an “abuse of discretion” standard, making ERISA cases much harder to win without experienced ERISA counsel.
Non-ERISA cases are generally reviewed under a fairer, de novo standard, where courts are not required to defer to The Standard’s decision.
4. The Appeals Process Is Mandatory Under ERISA
If your claim falls under ERISA:
- You must exhaust all administrative appeals
- Missing deadlines can permanently bar your lawsuit
- The appeal is effectively your one and only chance to build your case
For non-ERISA policies:
- You may be able to proceed directly to litigation
- Appeals are often optional, not mandatory
At DarrasLaw, we treat ERISA appeals as trial-level preparation, because we know courts will later rely almost entirely on that record.
How DarrasLaw Identifies the Policy Type (And Why It’s Not Always Obvious)
The Standard’s policies are often intentionally complex. Many claimants are incorrectly told their policy is ERISA—or are never told at all.
Our attorneys:
- Obtain and analyze plan documents and certificates
- Identify ERISA exemptions and opt-outs
- Examine employer involvement and funding
- Determine whether state law claims are available
This analysis can completely change the direction of your case.
Why Experience Matters When Suing The Standard
The Standard is a sophisticated disability insurer with well-funded legal teams and a long history of aggressive claim denials. At DarrasLaw, disability insurance law is all we do. We are nationally recognized for:
- Handling high-stakes ERISA litigation
- Litigating non-ERISA bad-faith cases
- Taking on The Standard and other major insurers
- Maximizing recoveries for disabled professionals and employees
We have been fighting disability insurers for over 30 years, and we know their tactics—especially when policy classification is used to limit claimant rights. If you are considering—or already involved in—a lawsuit against The Standard, policy type matters more than almost anything else. Before you appeal or file suit, your policy must be properly evaluated by experienced disability insurance attorneys.