As an employer, providing a safe and healthy working environment for your employees is a top priority.
But what happens when an employee has a work-related injury or illness?
Knowing the difference between short-term disability and workers’ compensation insurance can help you make the best decisions for your employees and your business. So let’s take a closer look at short-term disability vs. workers comp, how these two types of coverage work differently, who pays for them, and other essential details.
What is Short-Term Disability Insurance?
Short-term disability (STD) insurance is designed to provide benefits to employees who become temporarily disabled due to illness or injury that isn’t job-related. Employers typically offer this type of insurance as part of their health benefits packages, covering up to 60% of an employee’s salary.
At the same time, they are unable to work due to their condition. The amount of time covered by STD benefits may vary depending on the policy, but most policies have a maximum benefit period of 26 weeks.
What is Workers Compensation Insurance?
Workers’ compensation (WC) insurance is designed to provide medical care and financial assistance for employees who become ill or injured due to their job duties. Workers’ compensation coverage helps cover the following:
- medical expenses related to workplace injuries
- provides monetary compensation if an employee can’t work due to their injury
- pays death benefits if an employee dies from a workplace injury
- provides legal protection against lawsuits from employees claiming negligence on the part of the employer
Unlike STD coverage, workers’ compensation coverage is mandatory in most states.
Who Pays for These Types of Coverage?
Employers are typically responsible for paying the premiums associated with both STD and WC coverage. However, some states require employers with a certain number of employees to carry workers comp coverage, so check your state’s laws for specific information about this type of coverage in your area.
How Do I File a Claim?
In most cases, filing a claim for either type of coverage involves the following:
- notifying your employer about the incident that caused the injury or illness
- submitting documentation from physicians related to diagnosis or treatment
- providing proof that you are unable to work due to your condition
- filling out any applicable forms related to the claim process
You must follow all steps outlined in your policy for claims processing to go smoothly—and remember that there may be time limits associated with filing claims under either type of coverage, so don’t delay.
Short-Term Disability Vs. Workers Comp: In Closing
When it comes to short-term disability vs. workers comp insurance, understanding which type of plan best meets your business needs is critical — whether one type or both combined. Knowing exactly what kind of protection you are offering will ensure both you and your staff are taken care of properly if something goes wrong while on duty at work.
In addition, proper documentation regarding claims process timelines and knowing who pays for each type of plan can save you time should anything happen. By considering all these factors upfront, employers can move forward feeling confident they’ve done everything possible towards creating a safe working environment for their staff – which will benefit everyone involved with peace of mind included. Thanks for reading.