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Why You Should Offer Short Term Disability Benefits


It will avoid workers’ compensation claims. If you offer Short Term Disability benefits, your employees know they have paycheck insurance when they are unable to work due to an accident or illness. 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.

It will reduce your liability for lawsuits. 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 your loyal assistant who has worked for you for years goes out on maternity leave, you may feel compelled to pay her while she is off work. Unfortunately you have now set a precedent. If another employee is out for any medical reason, you have to pay them too! If you do not pay every employee who goes out on disability the same as you paid your assistant, 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.

It will increase employee morale. If you offer Short Term Disability benefits, your employees know their well being is important to you. You will have the security of knowing that if employees 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.

It will make you more attractive as a potential employer. 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 Long Term Disability benefits is a very important part of a total compensation package. 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.