The Benefits of Insuring Short Term Disability

You can accurately budget annual sick leave costs.  No fluctuations occur with unexpectedly high claim periods causing interruptions in cash flow.  In addition, many insurers will negotiate two-year rate guarantees.

The hard work of administering a self-insured sick leave plan is passed to the insurance carrier.

Your overall sick leave costs may be reduced by adjusting the sick leave presently offered to coincide with the short-term elimination period.

The adjudication of the short-term claim is left to the insurance company, and personalities are removed.

Claim confidentiality.

The insurance carrier pays benefits based on a well-designed contract that defines your company’s liability.

Prompt claims service.  With all employers, other work matters may interfere with getting the short-term claims paid on a timely basis.  On an average, the insurance carrier provides benefits within five working days after receipt of the claim.

The insurance carrier provides helpful tax information to the claimant.

The insurance carrier has the resources to insure that only qualified short-term claims become long-term claims.

By having the short term and long-term disability coverages with the same carrier, the long-term claims are identified early in the short-term stage.  The transition from short term to long-term disability coverage is seamless so that the employee and the administrator are saved the trouble of filing with and qualifying for two separate carriers.

Implementation of a fully insured short term disability program may actually help cut down on workman’s compensation costs by eliminating “Monday Morning” disability claims.  When an employee is hurt off the job, and they know there is a program to provide for them due to non-occupational injuries, they are less likely to file a fraudulent claim for workman’s compensation benefits.