What Is the Difference Between Disability Benefits & Worker's Compensation?

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If you get hurt on the job or become ill and are no longer able to work, there are a number of insurance benefits that may be available to you. You will either be entitled to worker's compensation or disability insurance. How do you know which one you are entitled to?

Disability Insurance

Disability insurance helps you if you become ill or are injured, but the medical problems are not work-related. This type of insurance will usually pay you benefits weekly. The insurance company pays out these benefits to you for a temporary, predetermined amount of time.

These types of insurance companies will pay you a portion of what you typically earn if you are incapacitated and can't perform your duties at work. You would have had to set up a disability insurance plan with your employer and made payments towards the plan in order to have the option of this benefit.

Worker's Compensation

All employers must carry worker's compensation insurance to protect their employees for injuries and accidents that happen in their place of business. If you are injured at work or by a work-related activity, your employer must legally pay for any medical bills and lost wages that you might incur. 

Worker's compensation is intended to provide benefits for you if you are injured or if some illness is caused by the work environment. If you become permanently or temporarily disabled do to work, they may also pay for your medical bills as well.

Some Insurance Companies Will Pay You Both

There are certain situations the can occur that you may be able to collect both disability insurance benefits, as well as worker's compensation benefits. If you are hurt at work and that has caused some type of cumulative effect on your health or if a previous work related injury continues to get worse, you can file for both disability and worker's compensation insurance benefits.

Successfully Report Your Claim

If you are injured on the job, it is important to report it to your employers as soon as possible. Then, your employer will contact their insurance company to pay for you medical bills and any other benefits you may be entitled to. Resources like Prediletto, Halpin, Scharnikow & Nelson, P.S. are also available to help ensure the paperwork of your claim best describes your current situation.

What if Your Employer Refuses to File a Claim?

Sometimes employers or insurance companies may try to dispute your claim for worker's compensation or disability insurance. A worker's compensation lawyer can help you file your claim. State disability programs may pay out until your case resolved. Then, your workers compensation benefits will pay back the state organization.