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Topics: Agent Resources Disability Benefits
Disability coverage is income insurance that most people think they’ll never need. But in reality, one in four American 20-year-olds will face disability before they retire. Not having disability insurance puts a worker and his family at risk when an unexpected injury or illness, such as cancer, strikes.
This is one reason a handful of states – including New York – have mandated disability coverage. If you employ full or part-time workers in New York, you must carry statutory disability insurance.
There are many myths about mandated disability coverage. Let’s consider the top five:
Fact: Workers’ compensation insurance provides partial wage replacement only to workers who are injured while on the job. It’s a fact that 95% of accidents and illnesses are not work-related.
Fact: Packaging workers’ compensation and disability insurance together allows agents to offer customers the convenience of 24/7 coverage: workers’ comp coverage for on the job injuries and disability coverage for off-the-job accidents, illnesses and pregnancy. By logging onto AmTrust Online, agents can write Disability Benefits Law (DBL) coverage on an existing Workers’ Comp policy with just a few clicks. Claim times are shorter on controverted workers' comp claims, with prompter payments, when a single carrier issues both policies.
Fact: Disabilities coverage replaces a portion of lost wages so that insured can pay their bills while they are unable to work. It does not cover medical costs.
Fact: New York businesses are required to cover full-time and part-time employees with mandated disability benefits under the Disability Benefits Law, but that coverage only replaces a percentage of salary up to $170 per week in wages. Few of us could survive on that. That’s why it’s critical to consider adding additional wage replacement benefits in the form of enriched coverage – such as the DBL Deluxe™ coverage offered by AmTrust North America.
Fact: Many large corporations misunderstand compliance requirements with the New York Disability Benefits Law and try to cover all employees across the country with a typical insured group short-term disability (STD) plan. Often group STD plans don’t meet state requirements and the company is found noncompliant. It pays to buy from a carrier with compliant DBL coverage.
As the old saying goes, when you take care of your employees, they will take care of you. And that’s good for business.