Workers' Compensation Vs Disability Benefits: What's the Difference?

 

Small business owners often strive to provide a safe working environment for their employees. But despite their best efforts, staff members sometimes sustain injuries while on the clock. Workers' compensation and disability benefits help protect and assist affected individuals in such moments.

Many people often find it challenging to tell these two Labor insurance plans apart. This write-up can help as the subsequent sections compare both plans and reveal their differences.

Why the Misconception?

Confusing workers' compensation and disability benefits can leave you red-faced when trying to make a claim you aren't eligible to obtain.

Except when working with reputable workman's comp lawyers in York, PA, most employees miss out on eligible claims, benefits that could have helped ease the challenges associated with recovery.

These two plans cater to employees who have sustained injuries and illnesses. They provide monetary support to victims, often up to the point of recovery. Also, both their policies vary depending on jurisdiction and occupation.

Most workers' compensation and disability benefits policies don't cover intentional or self-inflicted injuries. You can receive claims from both insurances if your status meets their eligibility requirements. But it's best to consult with top workman's comp lawyers in York, PA, during such scenarios to get the best advice. So, sharing these many similarities, it's easy for people to mix these terms up.

The Differences

Here are some of the differences between workers' compensation and disability benefits.

Coverage

Workers' compensation only covers work-related injuries. An employer is obligated to pay for an employee's medical bills and lost wages resulting from illness or bodily harm sustained while working. These injuries are often temporary and not a disability. But if the damage suffered leads to one, the employee is eligible to receive a permanent disability benefit.

In contrast, the disability benefits plan covers both work-related and non-work-related injuries and illnesses. This insurance caters to only a portion of the worker's lost wages and doesn't include medical expenses.

Legal Disputes

Legal disputes involving workers' compensation cases are often settled quickly. These issues don't go through the traditional judicial system; an administrative system expressly set up for more efficiency resolves them.

For legal disputes involving disability cases, the traditional judicial process often handles such issues. Sometimes, these disagreements can take years to resolve.

Reporting Claims

Employees are obligated to report any sustained work-related injury to their employer as soon as possible. After which, they would complete the appropriate forms before receiving a claim. The employer also handles medical arrangements via compensation insurance.

Employers also initiate the claim process in disability benefits insurance. But here, the insurance bears the responsibility of footing the bills.

Premium

Employees don't pay a premium toward work compensation plans but make one with disability benefits.

Tax

There are no tax payments on the workers' compensation plan compared to a disability benefit which is often taxable.

Parting Shot

It can be challenging keeping up with the various plans, especially when you recently incurred a significant injury. To stay ahead of such situations, many workers hire top workman's comp lawyers in York, PA, to handle the paperwork.