Tuesday, August 15, 2017

4 Reasons Why Employers Should Offer Short-Term Disability Insurance

Disability income insurance is a valuable addition to a company's employee compensation package. This insurance provides payments on a short-term (or long-term) basis to employees when they cannot work because of illness or injury. Besides offering your employees a safety net to help them stay afloat financially in the event of injury or illness, here are 4 other reasons why employers should offer Short-Term Disability insurance.

1. Attracts Potential Employees
The key to hiring the best available employees is to be competitive as an employer. Attracting and retaining good employees is difficult. An attractive benefits package that includes Short and/or Long Term Disability benefits is a very important part of a total compensation package that will be attractive to potential employees. Remember, your employees’ earning capacity is their most valuable asset. Individual disability insurance is not always available and, if available, is much more expensive than employer-sponsored disability benefits.

2. Increases Employee Morale
If you offer Short Term Disability benefits, your employees know their well-being is important to you. This is a way  to provide employees with the security of knowing that if they are hurt in an accident or become too ill to work, they have an income to pay their bills and feed their family. Your employees will appreciate you more for offering them such valuable protection.

3. Reduces Lawsuit Liability
An employee claiming to be hurt on the job is always a potential lawsuit. However, a potential lawsuit most employers overlook is discrimination. For instance, if you offer one employee compensation while they are out ill or injured, but do not pay every employee who goes out on disability the same as you paid that initial person, you are liable for a discrimination lawsuit. But, if you offer Short Term Disability benefits, every employee has the opportunity to choose whether they want paycheck insurance in the event of an accident or illness, and you are no longer obligated.

4. Decreases Worker's Compensation Claims
Your employees know they have paycheck insurance when they are unable to work due to an accident or illness when Short Term Disability is part of their compensation package. If an employee gets hurt over the weekend, they will be less likely to come to work Monday and pretend they were injured on the job in order to file a workers’ compensation claim. These fabricated claims increase your workers’ compensation premiums and liabilities as an employer.

Employees who are injured or get sick and are unable to work may find this coverage to be a true lifeline for staying financially afloat during off-work periods. The best insurance agent at the Lake of the Ozarks offers a variety of short and long-term disability coverages and services that provide cash to employees who are unable to work because of a disability, and ensures that they will be protected, even if they use up their sick pay. To learn more about the variety of insurance benefits that are available to you as a business owner, visit our website or contact Insure the Lake at 573-348-2794 today!

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About the Author: Steve is a double back-flip insurance ninja. He was named Young Insurance Agent of the Year by the Missouri Association of Insurance Agents in 2010 and is a Certified Insurance Counselor. When he is not helping customers, he enjoys community service, Latin dancing with his beautiful wife and going on adventures with his two awesome sons.

Steve Naught, CIC
3736 Osage Beach Parkway
Osage Beach, MO 65065
Next to Golden Coral