What is Short-Term Disability Insurance
Short-term disability (STD) insurance is a type of commercial insurance policy that covers a portion of an employee’s income when they cannot work. Unlike workers’ compensation insurance, short-term disability typically focuses on injuries, illnesses, or other situations outside the workplace.
For instance, an employee can use STD if they are ill and cannot work for an extended period. Other conditions that result in missing work, such as pregnancy, mental health conditions, or significant surgeries, may also be covered.
The employer can supply this type of coverage, or a worker can choose to purchase a short-term disability plan on their own. Some companies will pay the entire premium for their employees, while others will split the cost or require the employee to pay in full.
What to Know About Short-Term Disability
As a business owner or employee, here are a few things you should know about short-term disability insurance:
- Duration: Depending on the policy, insurance will cover incidents lasting up to six months.
- Benefit Amount: All plans differ in the benefit amount, with the maximum being 70-80% of the employee’s monthly income.
- Waiting Period: Compared to other types of benefits, short-term disability has a relatively quick waiting period (often only a couple of weeks).
Does Your Business Need STD Insurance?
If you are curious about whether your business should offer short-term disability insurance, contact Gail Longenecker (303-808-9351 x5). Mountain Insurance: Longmont can help with all of your commercial insurance needs!
We give out $25 gift cards for referrals that become our insurance clients.
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