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going to mediation for disability lawsuit tomorrow

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I live in Utah. I purchased a disablity insurance policy from my employer while working. I became disabled with MS during that period. They have refused to pay the policy & I had to get a lawyer - we are going to mediation tomorrow. My question is, I signed up for a disability insurance plan using taxed dollars which should have meant I would not be taxed on what I was to receive in disability payments. If we successfully mediate tomorrow with a settlement, am I required to pay taxes on the settlement even though the policy I purchased was to not be taxed??? It sure would change what I thought was a fair settlement? Also, can anyone point me to any documented legal tax laws on this?

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