Employers are rightfully challenged to have a workforce that offers equal opportunity to all employees. This includes those that may have disabilities or other issues that make them stand out from the rest of the workplace. Be providing these employees with options when it comes to insurance, employers clearly communicate that they have respect for all workers, and thus are more likely to attract skilled workers.

There are two main policies that employers can offer, covering short term and long-term disability. It is essential for an employer to understand the laws, especially when it comes to the provision of insurance.

Short Term vs. Long Term Disability Insurance

As an employer, a good place to start would be a short-term employee disability insurance plan. This will ensure that the employee will have their income replaced in the event that they have to face a temporary disability. This policy also allows for their job to be protected if they have a short-term disability which affects their ability to work as a result of an accident or illness. This is a basic benefit of this type of insurance. However, for an employer, there is some additional protection as it does not require the employer to reinstate an employee in case of a disability, especially if it turns out to be long term.

There is also the long-term disability insurance. This offer additional protection in the event that the short-term disability employee rights need to be extended. This type of employer disability benefits also covers those who have permanent disabilities. For even more benefits, an employer may choose to offer long term care insurance. With this cover, those with prolonged disability or chronic illness can then be covered.

Benefits of Offering Disability Insurance

There are a few employer disability insurance benefits worth noting. First, the employee can decide whether to take this insurance option or not. This means that it is not compulsory, though it should be encouraged. In addition, the premium may be paid in full or in part by the employer. If the benefit is paid by the employer, the employer is exempt from the tax, making it a requirement for the employee to pay the taxes on any funds received.

Some disability insurance requirements worth noting include: –

• A waiting period before the payment of disability benefits can be effected. This is to prevent the abuse of this insurance.
• An affirmation from the Social Security Administration that determines if indeed the employee is disabled.

More companies need to take up employee disability insurance for the long-term benefit of their companies. This type of insurance gives the employee peace of mind in the event that they have to deal with an accident. For the employer, it saves them from the tough decision of making a compensation decision for an employee who may be absent from the workplace. Remember, having insurance can offer you, the employer, support that could save your business from an astounding financial burden.