Benefits of a small business disability insurance plan

A small business disability insurance plan consists of short term and long term disability insurance. As opposed to worker’s compensation this insurance will pay for accidents or illness that occurred off the job. Disability insurance gives employees the ability to continue to pay their monthly expenses, while they are not receiving their regular paycheck. Many long term disability carriers provide vocational rehabilitation assistance.

How group disability insurance works

Short term disability typically covers day 1 of an injury and can continue for up to 90 days. Long term disability can begin as early as the 90th day of missed work. When the two are coupled together there will be no time that an employee is without any pay. Disability insurance is based on an employees salary. Typically, an employee is covered up to 60% of their weekly salary, but disability insurance can cover up to 80% of the employees salary.

The cost of small business disability insurance plans

Both short term disability and long term disability insurance can generally be tailored to meet the needs of both the employer and the employee. Plans can either be employer paid and tax deductible, or employee paid and payroll deducted.
The actual cost of the policy depends on the age of the employee and his/her salary.

If you are interested in a small business disability insurance plan and would like to get more information as to what it means for you, please call us at (888) 474-8500 or send us an e-mail at customerservice@harperandassociatesinsurance.com.