Function

• Work-related injuries are typically covered under worker's compensation. Off-duty injuries, however, are not. Short-term disability insurance provides coverage in the event that you become disabled. It may pay either a percentage of your income or a flat weekly rate. Employers may provide short-term disability from six weeks to two years, with a limit on how much you can receive in one period. To be eligible, you may be required to work for a specific amount of time. Employer group coverage may be provided at no cost to you.
  
  

Individual Coverage

• If your employer does not offer coverage, or you want to purchase additional coverage, you may consider purchasing individual short-term disability insurance. Unlike employer coverage, individual coverage is subject to medical underwriting, which means that your coverage may be limited based on your health. In addition, individual coverage is often much more expensive. Like employer coverage, individual coverage typically covers you for up to two years. With individual insurance, you determine the percentage of your income that you want reimbursed.
  
  

What it Covers

• Short-term disability insurance covers a number of scenarios. According to the Unum group, in 2008, pregnancies accounted for 21 percent of claims, injuries accounted for 10 percent, digestive/intestinal diseases accounted for seven percent and back injuries accounted for 6 percent. There may be a benefit waiting period from one to 14 days. Your disability insurance won't kick in until after that time. For illness or pregnancy, that waiting period may be at least seven days. For an accident, benefits may kick in immediately.
  
  

Do You Need It?

• If your employer offers short-term disability at no cost to you or at a significantly reduced rate, it's a good idea to get it. Individual insurance may be much more costly and only advantageous if you do not have money put away. If you do purchase an individual plan, make sure that it is non cancellable (cannot be canceled as long as you are paying your premiums) and guaranteed renewable, which means that your policy can be renewed.
  
  

Worker's Compensation

• The majority of employees are covered under worker's compensation, which is a state-mandated program that requires your employer to provide benefits and medical care if you become injured while on the job. If you are entitled to worker's compensation, your short-term disability insurance may cease. In the event that you find yourself collecting both disability insurance and workman's compensation, be sure to contact your worker's compensation agency to avoid being overpaid.