Workers compensation only pays if it happened at work. Most disabilities do not.
Short and long-term income replacement for employees who cannot work — covering the off-the-job illness and injury that workers compensation is specifically not there for, which is the large majority of them.
Tell us the situation.
A licensed human replies the same business day — not an auto-responder, and not five producers calling at once. We shop it across our carriers and tell you if the policy you already have is the right one.
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What group disability insurance businesses actually need.
Short-term disability
Typically 60% of salary for 3 to 6 months after a short waiting period.
Without it — An employee out for two months with a back injury or a pregnancy has no income at all.
Long-term disability
Income replacement after the short-term benefit ends, often to retirement age.
Without it — A serious illness ends the household income permanently.
Own-occupation definitions
The test of disability is your own job rather than any job at all.
Without it — A surgeon who cannot operate is not disabled under an "any occupation" definition.
What group disability insurance operators ask us.
Is this the same as workers compensation?
No, and the difference is the whole reason it exists. Workers compensation responds only to injuries and illnesses arising out of employment — it pays nothing for a heart attack at home, a cancer diagnosis, a skiing accident or a pregnancy. Those are the majority of the reasons working-age people stop working, and disability insurance is what covers them. Employers frequently assume comp has it handled, which is only true for the narrow slice of the risk that happened on shift.
What does short-term disability cost?
Commonly $15 to $40 per employee per month for a group plan replacing around 60% of salary, varying on the elimination period, the benefit duration and the industry’s claim profile. It is often offered voluntarily and employee-paid, which costs the employer nothing beyond payroll deduction. Note that five states and Puerto Rico mandate short-term disability through a state programme — California, New York, New Jersey, Rhode Island and Hawaii — so in those states the question is whether to top up rather than whether to offer.
Should the employer or the employee pay the premium?
It changes how the benefit is taxed, and the answer is usually counter-intuitive. If the employer pays the premium, the benefit is taxable income when it is claimed — so an employee replacing 60% of salary receives materially less than 60% after tax, precisely when they need it. If the employee pays with post-tax dollars, the benefit is tax-free. For long-term disability in particular, having employees pay the premium is often the better structure, and it costs the employer nothing.