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You\u2019re on top of things, receiving regular updates on your worker\u2019s status and feeling good about his or her recovery.\u00a0 But then an interesting thing shows up on your desk one day: a State Disability Insurance (SDI) claim filed by that employee.<\/p>\n
What is going on? (This is when I \u2013 the insurance agent \u2013 usually get a call from my client).<\/p>\n
First let’s define these two coverages:<\/p>\n
Workers Comp:<\/strong>\u00a0 that expensive policy you\u2019re required by the state to purchase that pays for injuries and illnesses sustained by your employees on the job.<\/p>\n State Disability Insurance:<\/strong>\u00a0 state-sponsored insurance that pays when an employee suffers an injury or illness that is NOT caused by or related to work.<\/p>\n So then, why would an injured worker who is already receiving workers comp benefits file an SDI claim?<\/p>\n Great question! \u00a0Because an injured worker can<\/strong><\/em>\u00a0receive payments from both workers comp and SDI at the same time in some situations<\/strong><\/em>.<\/p>\n What are those situations?<\/p>\n Number three is interesting. \u00a0It actually creates an incentive for an injured employee to file an SDI claim after an injury, just in case. \u00a0There is no harm or penalty to the injured employee by filing it, so why would they not do it?<\/p>\n Business owners, human resource professionals, risk managers, entrepreneurs and anyone else thinking about employing others \u2013 be on the lookout for these. \u00a0As litigated workers comp claims continue to increase, lawyers will bring SDI into the picture more frequently, and you will have more SDI claims showing up on your desk.<\/p>\n The state of California has a wealth of resources on State Disability Insurance and how it applies in contrast to workers comp. \u00a0Here are a couple of\u00a0links that can help you look more into the details:<\/p>\n http:\/\/www.edd.ca.gov\/Disability\/FAQ_DI_Workers_Compensation.htm<\/a><\/p>\n\n