One important part of pursuing your future goals as a dentist is procuring appropriate insurance protection for yourself and your business.
Both workers’ compensation and disability income insurance pay benefits in the wake of injury or illness but in very different ways. By exploring and understanding workers’ compensation vs disability income insurance, you can seek out the appropriate coverage for your situation and try to better prepare for the unexpected.
Workers’ compensation insurance may provide benefits for medical expenses and lost wages due to injuries that occurred at work during the scope of normal job duties. This may include a new injury that happened in the workplace or an existing work-related medical condition that has become aggravated.
For example, if you injure your back moving a heavy piece of equipment, it could be just as relevant and qualifying as someone who suffers from carpal tunnel syndrome as a result of working with their hands.
Generally, workers’ compensation can:
Long-term injuries may warrant long-term benefits for employees who are unable to return to work.
Disability income insurance may cover your basic living expenses by supplementing a predetermined portion of your lost income in the event of an injury or illness that limits how much you can work or prevents you from working completely.
Unlike workers' compensation, this insurance isn’t limited to injuries or illnesses caused at work. For example, if you suffer an injury or illness while on vacation and are unable to work, workers' compensation will be of little benefit. You may, however, be entitled to benefits under a disability income insurance policy.
Here are some differences between short- and long-term disability coverage options:
As a dentist with employees, disability income insurance is designed to supplement your personal income when you can’t work due to illness or injury. Workers’ compensation serves a similar purpose for your employees (and possibly yourself) but only if the illness or injury is in relation to their work for your practice.
When an employee is hurt on the job, employment law may dictate how employers are required to pay for medical bills and lost wages. Workers’ compensation helps employers cover these costs. In fact, workers’ compensation insurance may even be required by law in some states.
Disability income insurance, however, is not necessarily required by law and is generally purchased by individuals in order to try to help to protect their income in the event of an illness or injury that impacts their ability to work.
Both workers’ compensation insurance and disability income insurance can play important roles in providing for you and your family in the event of an injury or illness. Understanding the benefits of each in the context of your basic monthly expenses can help you to decide on which policies are right for you, and at what benefit level.
You need tailored coverage to safeguard your livelihood in case of life-changing situations. Since your health and age are considerations for obtaining disability income insurance, now is the time to think about protecting your income.
To learn more, read our complimentary guide: Disability Income Insurance for Dentists.
Treloar & Heisel, an EPIC Company, is a premier financial services provider to dental and medical professionals across the country. We assist thousands of clients from residency to practice and through retirement with a comprehensive suite of financial services, custom-tailored advice, and a strong national network focused on delivering the highest level of service.