Group Disability Insurance - Short Term Disability Coverage

Short Term Disability protection is designed to provide immediate income replacement benefits to employees unable to work due to an injury or illness. Short Term Disability benefits are typically payable for 4 – 6 months, coinciding with Long Term Disability waiting periods. It is often an employer paid benefit and, as a result, is usually taxable in the hands of the disabled employee. The benefit replaces a percentage of the employee’s weekly earnings up to a specified maximum. Once the end of the coverage period has been reached, an employee would be transitioned to Long Term Disability coverage as long as they continue to meet the definition of total disability.

With Short Term Disability coverage in place, employers are able to apply for an Employment Insurance (EI) premium reduction. Please contact us for more details.