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Many companies, especially those fairly new to the game, are unaware of group short term disability insurance. This type of business insurance provides employees the opportunity to take time off from work for a brief period of time—generally stipulated by a contract—and still receive some or all of their pay and benefits.

The best short term disability insurance will provide 100% pay and benefits for a significant period of time—say, six months. However, most plans will only pay a percentage of salary, generally around 60%, while still offering health and welfare benefits to employees.

But why should our company offer short term disability? It is, after all, just another expensive benefit to offer employees, right?

Well, not really.

Let’s explore the ins and outs of this type of insurance, and how it may affect your business.

Peace of Mind Insurance

Short term disability gives your employees the security of knowing that they can go on a period of leave for their disability and still continue to get paid and receive benefits. It provides a safety blanket of sorts for your employees who may otherwise choose to continue working through a serious illness because they would lose their income and benefits.

By offering your employees short term disability, you are giving them the chance to take time to stay at home and recuperate from whatever illness they are suffering from, be it a case of bad pneumonia or a broken leg, and they know they will continue to get a paycheck in the mail during that period of time.

Not Just For The Big Guys

Group short term disability insurance is something that is often overlooked by small or medium companies because of the fact that it is an added expense that may not be worth carrying. Large companies generally do offer some form of the insurance because they have more money and are able to cover the cost for each employee with their larger bankroll.

But small and medium size companies should seriously consider offering this to their employees because it will make them more attractive. The company may want to set stipulations about how and when the insurance may be used, such as after an employee has worked for six months, and then it may only be used for three months.

By offering short term disability benefits to all employees, your company could be setting itself apart from other businesses that do not offer short term disability insurance. Prospective employees may use that as a determining factor on whether to apply to your company.

Keeping Your Employees Happy

Offering the benefit to your employees will also help keep them employed with you. If it came down to a situation where an employee needed a significant period of time off for a major disability, but your company did not offer insurance for it, that employee may just choose to quit their job and seek employment elsewhere, since they would not be getting paid anyway.

This is not a good thing for your business, because you could lose a potentially good employee to another company—one that may offer short term disability. Even if you had a small plan which would have covered that employee for a few months, it could have helped retain them with your company. has a significant amount of information regarding group short term disability insurance, how it can benefit your business, and how it can help you attract and retain employees. If you would like more information about short term disability insurance or other types of insurance to protect your business, please schedule a free consultation with one of our business insurance specialists.