You may think that workers’ compensation is the only insurance you need to cover your employee’s potential injuries, but you’d be misinformed. The truth is that you should also carry workers disability to cover the instances when workers’ comp isn’t applicable.
How It Differs From Workers’ Compensation
Workers’ compensation only covers injuries and illnesses that are related to the job, such as carpal tunnel syndrome for office jobs. However, disability covers the injuries or illnesses that are acquired outside of work and prohibit an individual from performing work-related duties.
How Disability Insurance Works
If a person is injured or becomes ill outside of work, they must file the necessary paperwork to claim disability payments. Generally speaking, the amount of income provided through disability is a maximum of 50% of what a person’s paycheck would be. While companies can opt-out of the state program and create a private plan, the following locations put state-mandated disability programs into effect, according to Insure My Work Comp:
Protecting Employees Is Important
Whether an employee is ill or injured due to work-related situations or something outside of work, it is important to take care of them. Having workers disability can help your employees in times of crisis and make you a responsible employer.