New York State Requires Disability Benefits Insurance for All Employees

Employers in New York State are obligated to offer disability benefits insurance to their employees. This coverage is specifically designed to provide financial assistance in the event of off-the-job injuries or illnesses.

New York is among a few states that mandate employers to offer disability benefits insurance to their employees for off-the-job injuries or illnesses. To obtain this coverage, employers can approach a disability benefits insurance carrier authorized by the New York State Department of Financial Services to underwrite such policies. Alternatively, larger employers have the option to seek authorization from the Board to self-insure (WCL §211). Under the Disability Benefits Law (Article 9 of the WCL), employees are entitled to weekly cash benefits that partially replace their lost wages resulting from non-work-related injuries or illnesses (WCL §204). It is important to note that the responsibility for medical care lies with the employee and is not covered by the employer or insurance carrier.

Under this law, employees who have become disabled due to injuries or illnesses that occurred outside of work are eligible to receive cash benefits. Additionally, disabilities resulting from pregnancies are also covered.

To ensure the availability of this benefit, employers have the option to collect contributions from their employees. They can obtain coverage from various sources, including private insurance companies, the New York State Insurance Fund, self-insurance, or through legal exemptions.

It is important to note that exemptions are only applicable in a limited number of situations.

Disability Benefits Insurance Basics

Typically, Paid Family Leave coverage is included as an additional provision in an employer’s disability benefits insurance policy. When you’re healthy and working, it’s hard to imagine being disabled by illness or injury. But it can happen. The odds are that one in three working Americans will become disabled for 90 days or more before age 65. Your chance of becoming disabled is much higher than your chance of dying during your working years. For example, a 35-year-old man is 2.5 times more likely to become disabled than die before age 65; a 35-year-old female, 3.6 times! Individual disability income insurance can help provide protection against the financial uncertainties a disability causes. To make an informed decision, consumers should understand the definitions behind the terms below. Please note, these definitions are not complete and will vary according to the terms of the individual policy.

Types of Disability Insurance Benefits

Disability insurance is an insurance product designed to provide you with 40 – 60% of your gross income in the event you become sick or develop an illness that affects your ability to earn an income. The differences in policies are great, having a basic knowledge of the terms, types, and payment methods are very important aspects you should understand and consider when selecting disability benefits insurance. Because of the enormous differences between policies and companies, it is important that your selection of coverage not be based solely on price. Instead, you should develop an idea of your needs based on your lifestyle and measure those needs against the options and benefits of each insurance provider.

One of the first things you should review and understand when selecting a disability insurance policy is the insurer’s definition of disability. This is important because it varies between insurers and products and is one of the most important things to understand. The definition tells you in what situations the insurer will pay the benefit, and to whom it will be paid in the event you become disabled. The following will list some types of disability benefits insurance and also provides some of the key phrases used for various types of policies.

Every disability insurance policy from any insurance company can be very different. If you just buy the lowest price it could be like throwing your money out the window. You need to know the differences between an inexpensive disability policy with solid benefits and one that makes it very unlikely to pay benefits at all.

Own-Occupation Disability Insurance Benefits

The inability to perform the material and substantial duties of your regular occupation, the insurance company will consider your occupation to be the occupation you are engaged in at the time you become disabled, they will pay the claim even if you are working in some other capacity. If you cannot perform the duties necessary to stay in your field of expertise, can you continue to work in a different occupation without losing your benefits?

Income Replacement Insurance

Many insurance carriers have switched to these types of disability insurance policies. Sickness or injury results in your inability to perform the material and substantial duties of your occupation and do not engage in any other occupation. Does this sound fair?

Gainful Occupation Coverage

This type of disability benefits insurance is very common amongst employer/group policies. These types of policies leave much of the decision-making up to the actual insurance company. How uncomfortable is that? Because of sickness or injury, you are unable to perform the material and substantial duties of your occupation or any occupation for which you are deemed reasonably qualified by education, or training.

Who Needs Disability Insurance Benefits?

Simply put, if you have a job, you most likely need disability insurance. The possibility of a disabling illness or injury may seem remote, but statistics paint a different picture. Nearly one in three women can expect to suffer a disability that keeps them out of work for 90 days or longer at some point during their working years. For men, the odds are about one in four. And one worker in seven can expect to be disabled for five or more years before retirement.

For many, a sudden interruption of income could have serious financial consequences. Most of us have some kind of personal debt, typically a mortgage or credit card bill. Would you be able to maintain your standard of living if you were too ill or injured to work for an extended length of time? Half of all home foreclosures in the United States result from disability, as do an alarming number of personal bankruptcies.

In addition, an accident or illness that keeps you out of work for a period of time can be very costly. That’s because people who become disabled not only need to continue providing for loved ones but for themselves as well. A disabling injury or illness could lead to medical bills, modifications to your car or home, or other unforeseen needs that can be quite expensive. For all these reasons, almost anyone who works—whether they’re single, married, with children or without—should consider disability insurance.

How to Choose Disability Insurance?

Before you purchase a disability insurance policy, it’s important to make sure that you’re choosing a policy underwritten by a top disability insurance carrier. The best way to assess the soundness of a particular insurance company is by looking at the firm’s financial strength rating, as determined by one of the recognized independent rating agencies.

Verify that any policy you are thinking about purchasing has a top financial strength rating. This is a very simple and efficient way to determine just how sound an insurance company really is. It’s certainly important to choose a solid insurer to meet your income protection needs. After all, it’s essential to purchase income protection coverage from a disability company that is likely to be in business and able to honor your policy if you ever need to file a claim.

There are various quality insurance companies that offer disability insurance, each one offering income protection coverage. Each of these companies differ slightly in their contract wording and options. Deciding which one is right for you depends on several factors, including your occupation, the type of coverage you need, how much protection you want, your current health status, and additional variables.

When you need to find out which disability benefits insurance company is right for your personal situation, it’s a good idea to request disability quotes from Weinsurexyz. They’ll compare disability benefits insurance companies for you, helping you find the best rates and policy options. Whether you’re recommended to go with Guardian Disability Insurance, MetLife, Mass Mutual or one of the other top disability insurance companies, you can be confident that you’re getting the policy that best provides the coverage you need.

When choosing among different Disability Insurance Policies, it’s important to look at several different variables. Don’t select the first plan you come across without making sure that it is the most favorable option for you.

3 Disability Benefits Insurance Policy Considerations:

Strength of Disability Benefits Insurance Company – Be sure to select a solid insurer that’s likely to be around if and when you need to file a claim.
Favorable Definition of Disability – Select a policy that includes an “own occupation” definition of disability. If you work in a particular specialty within your field, be sure that’s specified within the definition.
Residual Disability Rider – Verify that the disability benefits insurance plans you are considering include a provision for paying benefits if you experience a partial disability. It’s best to select one that doesn’t require loss of time and duties and that pays benefits based on loss of income.

Disability Insurance Carriers

Our process is to provide you with disability insurance coverage that provides disability, recovery benefits and partial benefits that are most likely to pay in the event of a claim. This is the reason you obtain disability insurance .

Over the years, the number of disability insurance carriers that underwrite (issue and back) this type of insurance has decreased dramatically. The disability insurance companies that we represent are leaders in this field.

We Compare Disability Insurance Companies for You

Disability Insurance Experts will compare disability insurance companies and disability insurance quotes using our expertise and experience. Listed below are the primary disability insurance companies we use.

Let us help you bind Disability Benefits Insurance and any of the following coverages:

Business Liability Insurance Package Policy. Often referred to as a Business Owner Policy or “BOP,” this General Liability package policy protects your company in the event a client is injured on your premises, or if you or one of your employees causes an injury or property damage at a client’s location. Learn more…
Professional Liability Insurance. Professional Liability or “Errors & Omissions” Insurance provides coverage in the event you are legally obligated to pay for economic damages to your client or a third party allegedly caused by your negligence, error or omission in the performance of your professional services. Learn more…
Workers’ Compensation Insurance. Required in many states, Workers’ Compensation Insurance provides medical and disability coverage for company employees in the event of a work-related illness or injury. Learn more…
Employment Practices Liability Insurance. EPLI insurance provides the protection you need should one of your employees allege any number of employment practice violations. These violations include age, race or gender discrimination, wrongful termination and sexual harassment. EPLI is essential coverage for today’s small service business. Learn more…
Umbrella Liability Insurance. Umbrella or “Excess Liability” Insurance provides you with an extra layer of protection in the event you have large or multiple claims that exceed your General Liability, Commercial Auto or Employment Practices Liability policies. Learn more…

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