Short-Term Disability

What is Short-term Disability ?

‘Short-term Disability’ is a kind of insurance benefit that provides compensation to an employee due to any non-job-related injuries or illnesses that render an individual ineffective to work for a limited period of time.

The phrase ‘non-job-related’ is significant here as any job-related injuries would be covered under the normal insurance policies provided by the company. Similarly, ‘short-term disability’ would be effective for illnesses and injuries that last for a limited period of time only.

Short-term disability benefits can be either self-funded or provided by third party insurance agencies. In cases where it is self-funded, the employer bears all the charges related to the insured amount, while in cases of third party insurance providers, the charges are borne by the insurance agency.

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