When your long-term disability (LTD) claim is denied, the financial and emotional stress can be immense. You know you need help, but the thought of hiring a lawyer often brings another worry: the cost. Many people hesitate to seek legal representation because they believe they cannot afford it, especially when their income has been cut off. This fear, while understandable, is often based on misconceptions about how disability lawyers are paid.
Understanding the fee structure can remove this barrier and empower you to get the expert help you need. Most disability lawyers, including our team at Kotak Law, work in a way that makes legal support accessible to everyone, regardless of their financial situation.
This post will break down the costs of hiring a disability lawyer. We will explain the common fee arrangements, clarify what you can expect, and show why investing in legal expertise is one of the most valuable decisions you can make when fighting an insurance company.
How Do Disability Lawyers Charge for Their Services?
Unlike other legal fields where you might pay a large upfront retainer or a high hourly rate, disability law typically operates on a client-friendly model. The primary goal is to provide access to justice without adding to your financial burden. Let’s explore the common fee structures.
The Contingency Fee Agreement: The Standard Model
The most common payment model for disability lawyers in Canada is the contingency fee agreement. This arrangement is designed to protect you financially.
What it is: A contingency fee means your lawyer only gets paid if they successfully secure a settlement or win your case in court. Their fee is a pre-agreed percentage of the money they recover for you. If they don’t win your case, you do not owe them any legal fees.
How it works: When you hire a lawyer on a contingency basis, you will sign a written agreement that clearly outlines the percentage they will receive. This percentage can vary but is always established at the beginning of your professional relationship. The fee is calculated from the settlement amount after disbursements. This model aligns your interests with your lawyer’s — you both want to achieve the best possible outcome.
This “you don’t pay unless we win” model is the cornerstone of how firms like Kotak Law operate. It ensures that your ability to fight a wrongful denial is not determined by your ability to pay for a lawyer out of pocket.
Other Fee Models (Less Common in Disability Law)
While contingency fees are standard, it’s helpful to be aware of other fee structures you might encounter in the legal world.
- Hourly Rates: With this model, a lawyer charges you for every hour (or fraction of an hour) they spend working on your case. This can become very expensive, very quickly, and the final cost is unpredictable. This is rarely used for LTD claims because it is not affordable for individuals whose income has been cut off.
- Flat Fees: A flat fee involves paying a single, fixed price for a specific legal service. This is more common for straightforward, predictable tasks like drafting a will or reviewing a simple contract. It is not well-suited for the complexities and uncertain timelines of disability litigation.
Understanding Disbursements: The Other Costs
In addition to legal fees, every lawsuit involves expenses known as disbursements. It is important to understand what these are and how they are handled.
Disbursements are the out-of-pocket costs your lawyer pays to third parties to move your case forward. These are not part of the lawyer’s fee. Common disbursements in a disability claim include:
- Court filing fees: The cost to start a lawsuit.
- Medical records: Fees charged by doctors and hospitals to provide copies of your medical file.
- Expert reports: The cost of hiring medical specialists to write detailed reports or provide expert testimony to support your claim. This is often the largest and most important disbursement.
- Photocopying, courier, and other administrative costs.
Your lawyer will typically cover these costs on your behalf throughout the case. When your case settles, these expenses are reimbursed to the law firm from the settlement funds. A transparent retainer agreement will clearly explain how disbursements are handled.
The Value of Hiring a Disability Lawyer
When considering the cost, it is crucial to weigh it against the value. Hiring an experienced disability lawyer is not just an expense; it is an investment in your future financial security. Insurance companies have extensive resources and legal teams dedicated to protecting their bottom line. A lawyer levels the playing field.
Here are the key benefits:
- Maximizing Your Compensation: Lawyers understand the full value of a claim, which includes not just past-due benefits but also potential future benefits, aggravated damages for mental distress, and punitive damages if the insurer acted in bad faith. They have the negotiation skills to secure a settlement that is often significantly higher than what an individual could achieve on their own.
- Expertise and Experience: A disability lawyer knows what evidence is needed to prove total disability. They know how to get the right reports from your doctors, when to hire a medical expert, and how to counter the arguments made by the insurance company’s doctors.
- Handling All Communications: Your lawyer will manage all interactions with the insurance company. This protects you from intrusive questioning and pressure tactics designed to get you to settle for less than you deserve.
- Reducing Your Stress: Fighting an insurer is exhausting. Handing the legal battle over to a professional allows you to focus on what truly matters: your health and your family.
Transparency at Kotak Law: No Hidden Fees
At Kotak Law, we believe in complete transparency. We understand that you are coming to us during a vulnerable time, and the last thing you need is financial uncertainty.
Our process is clear:
- Free Consultation: Your first meeting with us is always free. We will review your case, explain your legal options, and answer all your questions about the process and the costs.
- Contingency Fee Basis: We only get paid when we settle your case. Our fee is a percentage of what we recover for you.
- Written Retainer: Everything is clearly laid out in a written agreement. There are no hidden fees and no surprises. You will know exactly what to expect from day one.
Don’t Let Cost Concerns Stop You From Getting Help
Wrongfully denied disability benefits can put your entire future at risk. While the idea of legal fees can seem daunting, the contingency fee model is designed to give you access to expert legal representation without any upfront cost or financial risk. The cost of not hiring a lawyer—a denied claim and no income—is far greater.
If your disability claim has been denied, don’t let fear of the cost prevent you from fighting for what you are owed.
Contact Kotak Law today for a free, no-obligation consultation. We will discuss your case, explain our transparent fee structure, and show you how we can help you get the compensation you deserve.
