On-Site Disability.

Offering On-Site disability policies is one way that employers can cut costs around their business. The way that offering disability insurance to the employees of a firm is that this has been known to lower worker’s compensation insurance. The way this lowers those products is by sharing some of the risks that are associated with covering the specific person, or group of people. When voluntary benefits are purchased and sold they are priced at the riskiness of someone living within the same zip code as the firm offering the benefits is headquartered.

 The way that the risk is shared from worker’s compensation insurance to the disability policies is that the disability policies are taking some of the risks that the insured has. The worker’s compensation insurance has a maximum payout, but the disability policies pay out first. This makes the potential payout for the worker’s compensation potentially would have to pay out in a cash amount. Short-term disability policies can also provide up to 60% of the average paychecks from the previous twelve (12) months.

 The On-Site policies are only going to pay for injuries and illnesses that occur on the job-site.