Buying the right kind of disability insurance is very important for companies and for their employees. Some plans are designed to work with cost sharing or employee-initiated coverage, but most types of disability insurance are designed around employers buying coverage to protect themselves and their employees, providing for the financial well-being of the company and the medical needs of an injured or disabled worker.

1. Workers’ Compensation

In the United States this is the most common type of disability insurance because it is required in one form or another by every state. The structure of the market and specific requirements for policies are a little different from one jurisdiction to the next, but their presence is ubiquitous. Employers buy these policies to provide unlimited coverage for medical expenses and other approved expenses under the statutes that govern the state in question.

2. Business Overhead Expense

This insurance is designed to help cover the costs of keeping a business running in the event of the owner’s disability, so it protects you in ways that disability insurance covering employees will not. Keep that in mind when selecting coverage.

3. Long-Term Disability Insurance

This coverage can be provided by employers or purchased individually by workers through programs designed for the purpose. It provides long-term wage replacement for injuries and disabilities that are not covered under the requirements of workers’ compensation.