Most business owners know a lot about workers’ compensation insurance. Workers’ compensation covers employees when they are injured or suffer an illness due to a work-related event. Disability insurance, on the other hand, covers disabilities that an employee may suffer from that is not work-related. To protect your employees, there are two categories of benefits.
Short Term Disability Benefits
Short term disability benefits pay for a short period of time. These benefits do not normally last for longer than a year. In general, the benefits may last for three to six months. Often, short term disability benefits are the most common for businesses to provide employees.
Long Term Disability Benefits
Long term disability benefits pay put for at least 90 days. Generally, these benefits can pay for two or five years and even up to 10 years. The coverage depends on the policy and the disability. Some may even have benefits for life. While some businesses may offer both coverages, others may choose to offer both as voluntary coverages to employees.
Unfortunately, when it comes to employees who suffer a disability, Social Security Disability benefits do not always cover them. Even when they do, the employee still has to wait up to six months, reports insure my work comp. To cover your employee disability costs, it is crucial to have the right insurance coverage.