Why workers comp isn’t enough
It is a legal necessity for employers to protect employees from injuries that happen at work. They recognize that the workplace—no matter how unassuming—is full of potential hazards. Even those with office jobs can incur carpel tunnel, a painful affliction that occurs after prolonged, repetitive movements. Workers’ compensation exists to provide security for anyone injured on the job. It’s an employer’s duty to make sure their employees don’t fall into financial ruin, especially if the injury is a direct result of the workplace environment.
Workers’ compensation mainly covers hospital bills and expenses used to treat an injury that occurs in the workplace. Workers’ compensation is also mandatory—state law (except in Texas) requires every company to provide workers’ compensation, which is meant to protect itself from litigation if the injury is deemed the fault of the employer.
But what happens if a person becomes disabled in the workplace and workers’ comp is not enough? In some cases, payouts will not cover all the expenses from the person suffering disablement, which, in addition to the physical and mental stress that accompanies injury, could become a bleak, dire situation.
That’s where private disability insurance comes in.
The Constraints of Workers’ Comp
Because of the specific conditions needed to qualify for workers’ comp, many workers prefer to invest in a private disability insurance plan. Workers’ comp will also only cover for injuries incurred in the workplace, but a disability insurance policy will cover all injuries, regardless of where they occur. This type of insurance provides a financial cushion and prevents the disabled individual from suffering emotional and monetary hardships, no matter if the disablement is an illness or didn’t occur at the workplace.
According to the Council for Disability Awareness, most disabilities don’t occur at the place of employment. For example, 90% of disabilities are attributed to illness rather than injury. In 2012, musculoskeletal tissue disorders were the leading cause of disability claims (28.5%), followed by cancer (14.6%) and mental disorders (8.2%). These afflictions would not be covered by workers’ comp since they wouldn’t occur on the job site.
One of the major benefits of private disability insurance is the peace of mind that the individual will be covered financially until he or she returns to work, no matter the affliction. With private disability insurance policies, providers give the insured the financial security to become healthy enough to work again.
Another disadvantage of workers’ comp is the lack of customization it offers. Workers’ comp will cover the essentials regarding an injury, but, as is the nature of the corporate environment, red tape and bureaucracy could delay payment. Private insurance plans, as opposed to a blanket workers’ compensation plan provided by the place of employment, can better suit the individual needs of the policy holder.
Very few injuries and afflictions are covered by workers’ comp. Private disability insurance policies are excellent options for workers who aren’t satisfied by the limitations of workers’ compensation.
Get Started with a Disability Insurance Quote Today
Disability insurance can help protect you and your family in the event that you are unable to work due to accident or illness. Use our online disability insurance quote tool today to get quotes from top-rated insurance companies. As always, the professionals at Intramark Insurance can help with any questions along the way.