Employee Benefits Short Term Disability Insurance

Short term disability insurance covers workers for short periods of time, usually 3 months or less.  Short term disability is very affordable when bought on a group basis.  It is also very difficult for employees to buy outside an employer sponsored plan, making it a very good employee benefit.

Short term disability usually breaks up disabilities into two types: accident and sickness.  The purpose of having two separate categories of disabilities is to establish reasonable elimination periods.  Elimination periods for accidents are short, usually only 1 day.  However, elimination periods for sicknesses are longer usually 7 days.  This keeps employees from filing a disability claim every time they get a common cold!

Furthermore, short term disability can cover maternity.  This is a great benefit not only to the employee, but also the employer.  This way the insurance company is paying for the cost of maternity leave!