Group Disability Insurance for Employers

KSA Insurance offers a variety of group disability insurance policies to help employers build a comprehensive employee benefits package for their valued workers. We work with businesses in Charleston, SC, and across the southeastern United States to help them find affordable, flexible policies that meet their coverage needs and budget.

To help you make an informed decision when building your employee benefits package, here is everything you need to know about group disability insurance for employers. Or, if you’re ready, you can request an online quote!

Improve Your Employee Benefits Package

Building a comprehensive employee benefits package provides several benefits that contribute to a successful, productive business. A high-quality benefits package can help businesses attract top-level talent, retain valuable employees, reduce turnover, improve workplace morale, and increase employee productivity.

While disability insurance requirements vary by state, many small, mid-sized, and large businesses offer it to ensure their employees are financially protected in the event that they are unable to work due to illness or disability. Disability insurance helps employees receive the care and support they need to get their lives back on track and return to work as quickly as possible.

What is Group Disability Insurance?

While workers’ compensation insurance covers expenses resulting from work-related injuries and illnesses, group disability insurance ensures your employees are covered when a non-work-related accident inhibits them from working.

When an employee suffers a non-work-related injury or illness and is not able to work, disability insurance supports them by covering a portion of their lost income. There are different types of disability insurance, which differ in the amount of income they cover and how long they provide income reimbursement. Beyond providing relief for lost income, many disability insurance policies also cover rehabilitation expenses to help them return to work more quickly.

How Does It Work

There are two main types of disability insurance: short-term disability and long-term disability. Each type of disability insurance covers lost income for a fixed duration, which varies depending on your specific policy:

Short-term disability insurance covers a portion of an employee’s income when the employee is forced to miss work for an extended period due to a covered incident.

Common short-term disabilities include:

  • Maternity leave
  • Rehab
  • Tendonitis
  • Whiplash
  • Surgery recovery
  • Carpal tunnel syndrome
  • Car accident recovery

Short-term policies typically cover a portion of lost income for anywhere from three to six months following the incident that caused the disability. However, the specific coverage period will depend on your policy. Depending on your coverage, short-term disability policies may cover as much as 80% of an employee’s gross income.

Long-term disability insurance covers a portion of lost income for a longer period of time than short-term disability insurance. This type of insurance is ideal for employees whose disabilities cause them to miss work for longer than six months.

Common long-term disabilities include:

  • Coronary artery disease
  • Heart attack
  • Stroke
  • Severe back pain
  • Pneumonia
  • Pregnancy complications

While long-term disability insurance lasts much longer than short-term coverage, it typically offers lower income reimbursement rates. However, these rates can still be as high as 60% of an employee’s gross income. In some cases, long-term disability insurance can be extended until the employee retires or reaches the age of 65.

Employers should carefully review their group disability insurance policy to determine whether it offers ‘own occupation’ coverage or ‘any occupation’ coverage:

  • Own occupation coverage offers benefits to employees when they are no longer able to perform their current job, even if they would be able to work at another job.
  • Any occupation coverage offers benefits only when the disabled employee is not able to perform any job.

Different states have different requirements for employer-provided disability insurance. States that require short-term disability insurance include:

  • California
  • Hawaii
  • New Jersey
  • New York
  • Rhode Island

Small businesses may qualify for voluntary disability insurance if they employ three or more eligible employees. Eligible businesses will need to purchase a supplementary health insurance policy that is supported by your business.

However, certain industries are not eligible for voluntary group disability insurance. This includes but is not limited to:

  • Massage parlors
  • Gambling companies
  • Professional sports teams
  • Military services
  • Slaughterhouses
  • Railroads
  • And more

A KSA Insurance agent will work with you to help you understand whether or not your business qualifies for voluntary group disability insurance.

Get A Quote

Whether or not your business is required to provide group disability insurance, it is an incredibly valuable policy that provides financial support for your employees when they are at their most vulnerable, making it a great option for businesses looking to build an appealing employee benefits package.

At KSA Insurance, we work with most major group insurance carriers and are licensed with Blue Cross, Blue Choice, Cigna, United Healthcare, Assurant, and Trustmark. Our experienced insurance agents will work with you to find a policy that meets your coverage needs and financial requirements.

Contact us to request a quote and learn more about our other insurance products for employers.

KSA Insurance Rated 5 / 5 based on 203 reviews. | Our Reviews