Disability Insurance

Insurance that replaces part of an employee's income when illness or injury prevents them from working.

Benefits

Disability insurance can supplement sick leave, workers' compensation, and government benefits. Coverage can be short-term or long-term depending on the policy.

What a Policy Can Cover

  • Income replacement percentage
  • Waiting period
  • Maximum benefit
  • Coverage duration
  • Eligible conditions
  • Employee contributions
  • Employer contributions

Coverage Differs by Market

US employers often provide private disability insurance alongside government programs. Australia combines government support, workers' compensation, and insurance linked to superannuation.

Several Southeast Asian countries provide disability support through national social security systems.

Before Adding Coverage

Check existing local protection first. Disability insurance can increase your total employment cost, so include it when using an Employee Cost Calculator.

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