Disability and Workers Compensation Insurance
Employers have the option to pay for disability insurance entirely, have their employees pay for their own disability insurance or share the cost. Disability insurance is designed to cover an employee for lost income or medical expenses caused illness or injury while working. To qualify for disability insurance, the employee must have been employed by the company when the disability occurred. The employee must also not be able to perform the same job responsibilities as defined in the disability insurance policy. A licensed healthcare provider must certify the employees claim and remain under the healthcare providers care until he is no longer disabled.
Careful documentation must be made by the healthcare provider. It is important for the healthcare provider to document the treatment for the disability separate from the treatment of other illnesses.
There are several situations that may disqualify a person from receiving disability insurance. Patients who are receiving unemployment benefits do not qualify for disability insurance. If a person is disabled while committing a felony, is in jail or a halfway house, or fails to let a healthcare provider verify the disability he is likely to be denied disability insurance benefits.
Worker's compensation insurance is purchased by an employer for medical expenses that are incurred because of work related injury or diseases, which must have occurred while employed and on the job.
There are two categories of worker's compensation insurance benefits. Indemnity benefits are designed to compensate the worker for lost income. Medical benefits are designed to reimburse the worker for medical expenses.