Even though the Americans with Disabilities Act (ADA) was enacted over 25 years ago, employers are still struggling to provide adequate short-term disability (STD) insurance for their employees. Many people are surprised to learn that short-term disability insurance is not required for employers. As a result, not all employers provide short-term disability. The main reason for this is cost. Short-term disability insurance can be expensive, and smaller businesses may not have the budget to provide this benefit. In addition, because claims are paid out of the collected premiums, there is always the risk that claims will exceed premiums, and the policy will be-come insolvent. For an employer, it can be difficult to find short-term disability insurance to provide this benefit for their employees.
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Frequently Asked Questions
Short-term disability insurance is a type of insurance that provides coverage for a limited period of time. The policy pays a portion of an employee's income if they are unable to work due to an illness or injury. This can be an essential safety net if you experience a sudden health event that prevents an employee from working. Short-term disability insurance can help employees cover their living expenses and stay afloat financially until they can return to work.
The length of time covered and the number of benefits paid will vary depending on the policy, but typically short-term disability policies will cover you for 3-6 months. Some policies may also provide some coverage for pregnancy and childbirth. Most short-term disability policies are purchased through an employer, but employees can also buy a policy independently. If your company has a short-term disability policy in place, it can help ease employees' financial worries if they are suddenly unable to work.
Which type of disability insurance you select depends on several factors, including your financial situation, health history, and job security. If your employees are relatively healthy and have a good chance of returning to work within a few months, short-term disability insurance may be the better option. However, if you're worried about your employees being out of work for an extended period, long-term disability insurance may provide the peace of mind you need.
Many employers provide short-term disability insurance as a way to attract and retain employees. This type of insurance can provide much-needed financial assistance to workers who can-not work due to illness or injury. It can also help relieve some of the financial burdens placed on employees during this time. Short-term disability insurance can reimburse employees for a portion of their lost wages, and it can also help cover the cost of medical expenses. This type of coverage can be an essential part of an employee benefits package, and it can provide peace of mind for both employees and employers.
If your company is located in the greater Los Angeles County area, including Pasadena, Los Angeles, Riverside, Long Beach, San Bernardino, CA, and beyond, give us a call. At Employee Retention Benefits, we give companies the edge they need with short-term disability insurance to succeed in a competitive job market.