What is Short Term Disability Insurance?
Short term disability insurance is coverage that goes into effect as soon as an employee is rendered unable to work due to complications such as illness, injury or birth of a child. This type of insurance covers time periods ranging from a few days to one year. After short term disability insurance coverage ends, long term disability insurance may begin.
The majority of the conditions that prompt short term disability support, such as strains and mild illnesses, are quickly resolved, allowing an employee to return to work before their benefits are entirely used up.
Who Offers Short Term Disability Insurance Policies?
Most employers have short term disability insurance policies available for their employees. In fact, in states like Hawaii, New Jersey, New York and Rhode Island, it is mandatory for employers to provide at least 26 weeks of short term disability coverage. California requires employers to provide 52 weeks.
What Do Short Term Disability Insurance Policies Entail?
Short term disability insurance policies offer employees a specified percentage of their pre-disability salary during the time they’re unable to work. This percentage varies from plan to plan, but it is typically, though not always, somewhere around 60 percent. Coverage from short term disability insurance policies kicks in once sick leave is exhausted.
Usually, the amount of time for which an employee is eligible for short term disability insurance is based on how long they have worked at the company. In other words, if an employee has been working for a company for a long time, they will likely have more short term disability coverage time than a recent hire.
For more information on short term disability insurance, get in touch with one of our specialists at 800-649-9094.