Disability insurance is an important part of business insurance. It is a benefit offered to an employee at the workplace when he is unable to work due to some kind of illness or an injury. By clubbing this type of insurance with other insurance covers life or health insurance, you can provide significant benefits for your employees. Moreover, this type of insurance policy is important for employee retention and improving loyalty.
How it works?
The corporate disability policies in all the states in the United States function the same way. Once the employee suffers from some injury or illness, he has to undergo a waiting period. During this period, no benefits would be paid. The physician will roughly determine for how long the person would not be able to work due to his physical condition. This is generally called the proof of permanency.
If you want to know about the working, then you should click at https://generalliabilityinsure.com/small-business/grocery-store-insurance.html / site. The information about the working is available at the site. When the condition of the store is excellent, there is no requirement to get the insurance policy.
The disability policy premiums depend on a number of factors. These include age, occupation, general health and the nature of their work. For example, in a construction firm, a draftsman is at a lower disability risk than a roofer. Therefore the latter’s premium would be much higher.
Types of disability policies
There are generally two types of disability insurance policies:
- Short-term disability
- Long-term disability
Short-term disability
This type of coverage is applicable when a person is said to have fallen ill for a short time. It is also applicable for short-term injuries that would keep him away from his work. Normally the duration is anywhere between 14 and 21 days. The benefits for these cover do not last for more than 2-3 days. This means that it is sufficient to get him back to work.
Long-term disability
This type of coverage is meant for a disability which is expected to last for a very long time. In some cases, it may also be permanent. The injured or the ill will get the benefits for a long duration or for the rest of his life, based on the conditions of the policy.
In this case, it is important to understand that whether it is a guaranteed renewable policy. It means that the policy is renewed once in every year. The premium keeps increasing and it turns out to be very expensive over time. The other type includes a non-cancelable policy. Here, the premiums and benefits remain the same. It can only lapse when the policy holder’s company stops paying the premium.
Other benefits
There are several other benefits of corporate disability insurance covers.
- It not only offers significant benefits to your employees, it also provides significant tax savings to your enterprise.
- Most business owners prefer this policy as it adds to a company’s employee benefits program.
- This kind of program not only benefits the employee alone, but also provides financial security to his family members during the adversity.
However, before including disability coverage to your business insurance plan, you should have a discussion with your consultant so that you can understand the most valuable way to benefit from the cover.
