Small Business Long & Short Term Disability Insurance

Secure your team's future and your business’s success with disability insurance that works when they can't. Keep your business running strong with short and long-term disability coverage. Click on the link below to get a quote for small business disability insurance.

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What is Small Business Disability Insurance?

Small business disability insurance is a type of insurance coverage that protects employees and business owners in the event that they become unable to work due to illness or injury. This insurance provides income replacement to individuals who are temporarily or permanently disabled and unable to perform their job functions. There are two main types of disability insurance offered to small businesses: short-term disability and long-term disability. In summary, small business disability insurance is a valuable tool for both employees and employers, providing financial protection in the case of illness or injury and helping maintain stability within the workforce and business operations.

Benefits of Small Business Disability Insurance:

Employee Protection:

Ensures that employees continue to receive income while they recover, reducing the financial stress associated with being unable to work.

Business Continuity:

For business owners, disability insurance helps maintain personal income and ensures that the business can continue to operate in the owner's absence.

Increased Employee Loyalty:

Offering disability insurance can increase employee satisfaction, loyalty, and productivity by providing financial security during unexpected health events.

Why Get Disability Insurance?

Helps Protect Your Business Operations:
For key employees or business owners, disability insurance can protect the business from the financial strain caused by their absence. Whether it's replacing lost income or ensuring that operational expenses (like payroll or rent) are covered, disability insurance helps the business maintain continuity even during difficult times.

Helps Attract and Retain Employees:
Offering disability insurance as part of a benefits package shows a commitment to employees' financial security, which can help attract top talent and retain existing employees.

Enhances Your Benefits Package at a Lower Cost:
Disability insurance can be relatively affordable for small businesses, especially when offered as a group policy, which allows employers to share or subsidize the cost with employees through payroll deductions.

Tax Benefits:
In many cases, the premiums you pay for employee disability insurance can be tax-deductible as a business expense, further reducing the overall cost of offering this valuable protection.

Bottom line: offering disability insurance is an investment in your workforce and your business. It provides security for your employees, minimizes disruptions to your operations, and helps you attract and retain the best talent—all while being cost-effective and potentially tax-advantaged.

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Small Business Disability Insurance FAQs

What is the difference between short-term and long-term disability insurance?

Answer
- Short-Term Disability (STD) covers employees for a temporary period, usually from a few weeks up to six months, for conditions like recovery from surgery or injury.
- Long-Term Disability (LTD) provides coverage for extended periods, often starting after STD ends, and can last for several years or until retirement age for more severe or permanent disabilities.
How much of an employee’s salary is covered by disability insurance?

Answer

Typically, disability insurance covers 50% to 70% of an employee’s gross salary, depending on the policy and coverage chosen by the employer. This income helps employees manage their finances while they are unable to work.
Who pays for disability insurance—employers or employees?

Answer

It depends on the company’s policy. Some employers cover the entire premium, while others offer disability insurance as a voluntary benefit where employees can pay through payroll deductions. Employers and employees can also share the cost.
Is disability insurance required by law for small businesses?

Answer

Disability insurance requirements vary by state. Some states, like California, New York, New Jersey, and Rhode Island, require employers to provide short-term disability coverage. However, long-term disability insurance is typically not mandated by law.
Can business owners purchase disability insurance for themselves?

Answer

Yes, business owners can purchase disability insurance to cover their own income in the event they become disabled. They can also get business overhead expense coverage, which helps pay for operational expenses during the owner’s disability period.
How long does disability insurance coverage last?

Answer
- Short Term Disability Insurance typically lasts up to six months, depending on the policy
- Long Term Disability Insurance can provide coverage for several years, until a certain age (e.g., 65), or until the individual is able to return to work.
What medical conditions are covered under disability insurance?

Answer

Disability insurance typically covers a wide range of medical conditions, including injuries, surgeries, chronic illnesses, mental health conditions, pregnancy, and other conditions that prevent an employee from working for an extended period.
Can employees receive disability benefits if they are partially disabled?

Answer

Yes, many policies include provisions for partial disability, where employees may return to work part-time while still receiving a portion of their disability benefits to cover lost income from reduced hours.

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Small Business Long & Short Term Disability Insurance

What is Small Business Disability Insurance?

Benefits of Small Business Disability Insurance:

Employee Protection:

Business Continuity:

Increased Employee Loyalty:

Benefits of Small Business Short & Long Term Disability Insurance:

Why Get Disability Insurance?

Small Business Disability Insurance FAQs

What is the difference between short-term and long-term disability insurance?

How much of an employee’s salary is covered by disability insurance?

Who pays for disability insurance—employers or employees?

Is disability insurance required by law for small businesses?

Can business owners purchase disability insurance for themselves?

How long does disability insurance coverage last?

What medical conditions are covered under disability insurance?

Can employees receive disability benefits if they are partially disabled?