You encounter many dangers on the construction site that could result in an injury. You can’t do your job when you’re injured, but you still have bills to pay, so workers comp insurance and disability insurance offer coverage to keep you afloat. These two insurance options have a similar end goal, which is to provide compensation when you are unable to work due to injury or illness, but they vary in the details.
You pay disability insurance out of your own income, either through a private policy or an employer-run plan. If you have a short-term disability due to an injury, you receive a portion of your income during the disability period. This will prevent you from undue stress from unpaid bills piling up and want for basic needs during your recovery period when you are unable to work.
Workers Comp Insurance
Your employer covers the costs of workers comp insurance, as opposed to employee-paid disability insurance. The payment covers a portion of your income you would have received if you didn’t get injured, as well as your medical bill costs. Medical bills put a dent in many construction workers’ budgets, especially if they don’t have health insurance. Workers comp insurance takes this worry away from you.
The Differences Between Disability vs Workers Comp
Understanding disability vs workers comp insurance requires completely understanding their similarities and differences. You have to pay for disability insurance premiums every month while workers compensation is covered by your employer. However, workers comp only covers injuries that happen on the job site, while disability insurance can cover situations where you can’t work due to an injury or illness that’s not work related.
Disability insurance does not pay your medical bills, while workers comp does provide coverage for any medical bills associated with your injury. Both insurance options only pay you a certain amount of the wages you would have earned, so while it helps relieve the financial strain, you may still encounter some frustration.
You can have both disability and workers comp insurance, so it’s important to know the pros and cons of each side. Hopefully you will never get hurt doing construction work, but it’s not wise to go without any income protection in this field, especially if you are responsible for supporting your family. It’s best to play it safe and be prepared with an understanding of these common insurance options.