Why does your New York business need Short-Term Disability Insurance?

Your New York business carries Workers’ Compensation in the event an employee is injured or gets sick on the job. But what happens when these injuries occur away from work? That’s where short-term disability comes in.

Short-term disability insurance provides a temporary benefit that’s payable on a weekly basis to an employee to help cover lost wages.

Who is eligible for Short-Term Disability Insurance in New York State?

New York business owners are required to provide disability coverage to their employees after four weeks of steady employment in any one calendar year. If the business has only one employee the requirement kicks in after 30 days. Employers must also take into account part-time employees who become eligible for disability coverage on the 25th day of regular part-time employment.

Others who may be eligible for Short-Term Disability Insurance coverage:

  • Independent contractors
  • Domestic workers
  • Drivers in the trucking industry
  • Licensed insurance professionals
  • Licensed real estate professionals
  • Sales associates, among others

How long will Short-Term Disability Insurance pay the employee?

After an initial seven day waiting period, disability benefits are paid on a weekly basis and represent up to 50% of the claimant’s average weekly wage not to exceed $170/per week. The payments are made for up to 26 weeks in any one consecutive 52-week period. As a business owner in New York State, you have five days after being notified of the injured worker’s disability to supply the worker with a Statement of Rights under the Disability Benefits Law.

Is disability insurance coverage mandatory? Where can I purchase it?

In New York State short-term disability coverage is mandatory and must be provided for all eligible employees or the employer may be subject to significant fines in addition to possible jail time for up to one year.

Short-Term Disability Insurance can be purchased through Schaefer Enterprises. As a leading New York based insurance agent who chiefly places coverage on behalf of New York State insureds, we know how to help you remain compliant and to avoid fines and penalties.