A small business short-term disability insurance is critical. It helps take care of employees who cannot work for a period of time because of sickness or injury.

Maternity leave is a typical case for disability insurance for employees. However, you can also use them for surgeries, accidents, and the treatment of diseases.

A short-term disability insurance plan is an additional coverage separate from a medical plan.

When a small business wants to consider this type of insurance, the cost should be considered to make it budget-friendly.

As an individual, you can buy short-term disability coverage if your employer doesn’t sponsor it.  

The great thing about Short-term disability is that it provides an employee financial support if he is temporarily unable to work due to specific eligible conditions.

The coverage could be as 60% of your gross weekly earnings for a period of 9 to 52 weeks.

There are great companies such as Athem, Aflac, and the likes which offer disability insurance for employees and help pay out-of-pocket expenses your major medical insurance doesn’t cover in America.

 The company you choose to buy your disability insurance policy from is a function of many things including the size of your business and the goals you have for it.

Short-Term Disability Insurance for Small Business Owners

You can encourage your employees to short-term disability policy by themselves. But if your business has the budget, it should be an insurance care policy sponsored by the business.

Here are some factors to consider when taking short-term disability insurance for your business…

Who pays for Short Term Disability coverage?

One of the key factors to consider when choosing a short-term disability plan is who is paying for it.

A large company can afford to cover the entire premium cost which is usually minimal when compared with medical coverage. But this might be hard for a smaller business with a limited budget.

This makes it possible for a small business owner to shift the coverage to employees through payroll deductions.

When this happens, it becomes an optional benefit known as “voluntary short-term disability”.

Each state in America sets its own requirements as to whether employers must carry Short term disability Insurance and the basic coverage amounts.

States can also dictate the amount of the weekly cash benefit limits. So, you need to check what is obtainable in your state of residence in America.

How Long the Short-Term Disability Coverage is Meant to Last

The duration of a coverage affects the premium to be paid and the employees’ acceptance.

Normally, a short-term disability coverage spans 12 weeks or a four-month maximum.

But in some instances, some companies in America may choose to get it to 180 days.

This is because long-term disability plans tend to start on the 181st day of sickness or injury, to eliminate any gap in payment for the employee. Though this eventually makes the plan to be more expensive due to the greater coverage window.

The Starting Time of The Short Term Disability Coverage

The business owner has the responsibility to determine when a coverage begins. And this affects the cost of premiums for short-term disability.

If for example, a coverage begins on the first full day of injury or sickness and the first day of employee absence, the premium would be higher as the coverage period and risks for the carrier increase.

It is possible for the short-term disability coverage to begin on the eighth or 10th day of absence or sickness/injury.

This elimination period encourages employees to cover themselves financially until their coverage becomes active.

Coverage Level Is Important when Taking A Short term Disability Insurance

The level of coverage is another important decision the business owner will have to make.

 Most plans do not cover the full amount of the employee’s pay to reduce cost for the insurance company. This in turn helps to determine the premium.

 A typical short-term disability plan covers a percentage of an employee’s wages, such as 60 percent or 70 percent.

There is also often a cap to what the plan would cover.  It could cover for 60 percent of an employee’s wages, up to a maximum of $500 per week.

This helps to limit risks for the insurer though exposing the employee more.

Be sure of What Qualifies Under The Policy.

 Illness, pregnancy, accident and any sickness that make it impossible for you to work temporally may qualify you to receive short-term disability benefits.

However, your policy will specify which conditions are excluded from the policy.

self-inflicted injury, loss of work due to war, injuries due to a riot or protest participation, loss of license or loss of work due to jail time are Some possible exclusions to short-term disability benefits.

You need to carry out proper research on both companies and their various exclusion before going ahead to buy a policy in America.