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You may be able to sue your long term
disability insurance carrier if they act in bad faith and unfairly deny
your LTD claim. But if your long term disability insurance plan is an ERISA
plan (see: What types of long term disability claims are ERISA?) you
will not be able to sue for punitive damages, though you will be able to
sue for the long term disability benefits that you are owed along with
interest, plus a portion of your long term disability lawyer fees.
However, whether your long term disability benefits are derived from an ERISA or non-ERISA plan, the involvement of a long term disability lawyer
on your case can serve to send a message to the insurance company that
your LTD claim should receive fair and full consideration. It will
simply not be worth it to them to escalate their own costs.