Short-term disability replaces income benefits that offer a percentage of pre-disability earnings weekly when employees are not working due to a disability claim.
Most employees expect to miss a day or two of work now and then, maybe for a cold, a flat tire, or a surprise visit from family relatives. But what happens when several days off turn into a week, or even months? When employees are unable to work for a period due to an injury or serious illness unrelated to their job, it can harm them and their employers. The workers might experience financial hardships due to lost wages, while employers suffer productivity interruptions.
A solution to this problem is offering short-term disability insurance to your employees. It’s a cost-effective voluntary insurance that doesn’t overlap with long-term disability insurance.
How Does Short-Term Disability Work?
Short-term disability replaces income benefits that offer a percentage of pre-disability earnings weekly when employees are not working due to a disability claim. It typically covers off-the-job accidents and illnesses that workers’ compensation does not. Short-term disability insurance varies according to the state and provider, including:
- Traditional– Companies pay the full premium for their employees
- Contributory–Businesses and their employees contribute to the benefit cost
- Voluntary – The employees pay for the disability insurance benefits
- Core buy-up– Employees have the option to purchase additional coverage
Why File a Short-Term Disability Claim?
Short-term disability claims from employees usually occur due to illnesses and injuries that are not related to workplace activities, such as:
- Maternity leave
- Surgery recovery
- Vehicle or other significant accident
- Medical procedure
- Short-term illness
Although employees can start receiving short-term disability payments for accidents on day one, the usual start date is the eighth day after filing a claim.
Key Benefits of Offering Short-Term Disability Insurance
To truly benefit from the rewards of offering short-term disability insurance, employers must compare the initial costs with the long-term benefits. Suppose employees cannot afford to participate in the disability program; it may diminish rather than enhance their morale. Employers who succeed in balancing cost versus benefits may be able to:
- Attract new hire talent
- Retain talented team members
- Strengthen employee engagement
- Enhance employee financial wellness
With The MWE Partnership by your side, you can obtain cost-effective disability solutions tailored to your business needs. Call us today at 410-394-9617 to learn how your employees can prepare for the unexpected.
Get in Your Voluntary, Supplemental, and Health Insurance Policies with the MWE Partnership!
Are you a business looking to provide your employees with essential voluntary benefits? If so, look no further than The MWE Partnership. When you choose The MWE Partnership, you get experienced service and comprehensive voluntary benefit options that will meet all your employees’ needs. With over 17 years of experience, The MWE Partnership is your go-to provider for all your supplemental benefit needs. If you are interested in finding out how The MWE Partnership can help your business, contact us today! We encourage you to like our Facebook page and follow us on X and LinkedIn for the latest voluntary benefit news!