New York State Short Term Disability Insurance

Are you overpaying for your New York Disability Insurance? There is a good chance you are and don’t expect your broker to tell you.


Short term disability insurance is required if you own a business in NY and many employers overlook the fact that each year their rates go up. Most employers don’t even realize that they have a choice to shop their plan around and maybe find a better rate.

Your broker won’t tell you this because he or she is more than happy to get a check and do virtually nothing to earn it.

Compare NYS Mandatory Disability Insurance Rates.

Most employers buy a short term disability (STD) insurance policy, stick it in the drawer and forget about it. Over time, short term disability prices increase ever so slightly but few employers rarely pay attention to these insurance rate hikes.

Quick Tip: Use the form on this page to get a free, no obligation quote

This is a big mistake, because like most insurance products, Short Term Disability insurance is very competitive and policies can vary in price from carrier to carrier. And don’t expect your broker to tell you because he or she is making a commission on the premium.

Are You Paying More For NYS Disability Coverage?

Here are sample rates from one of our A+ Insurance carriers:

Male Employees (1-49) $1.64
Female Employees (1-49) $3.71

Are you Paying more?

You can get a free quote for NYS Mandatory Disability Insurance by calling 800-514-3513 and let us compare your current premium to one of our quality insurance providers. We represent all authorized NYS Mandatory Disability Insurance providers such as:

  • Guardian
  • First Rehabilitation
  • Standard Life
  • Hartford
  • Mutual of Omaha
  • Standard Security

States Requiring Short Term Disability Insurance

Some states require employers to provide partial wage replacement insurance coverage to their eligible employees for non-work related sickness or injury.

Currently, if your employees are located in any of the following states, you are required to purchase disability insurance:

New York: New York State Workers’ Compensation Board
California: Employment Development Department
Hawaii: Unemployment Insurance Division
New Jersey: Department of Labor and Workforce Development
Puerto Rico: Department of Labor and Human Resources
Rhode Island: Rhode Island Department of Labor and Training

What You Need to Know about NYS Mandatory Disability Benefits Law.

NYS requires all employers to provide Mandatory Disability Insurance Benefits to their employees. Failing to provide coverage is a misdemeanor and carries a $500 fine or up to one year in jail.

Employers may comply with this mandate to make short term disability (STD) insurance coverage available to their employees in one of two ways:

1. Purchase disability insurance from a state approved insurance company for the benefit of his/her employees or,
2. Establish a “Private”, self-insured disability benefits law plan

NYS Mandatory Short Term Disability Benefits Requirements.

Employees must pay the required contributions to the plan and also pay any additional insurance premium that may be required by the insurance company to pay for incurred claims expenses or insurance company administration costs.

Contributions to the state disability plan or to a self-insured disability plan are deductible by the employer and considered taxable income to the employee. Employee contributions to the State Fund are deductible as state taxes, while contributions to a private plan are treated as non-deductible personal expenses.

NYS Short Term Disability Costs

The employee contribution rate is 0.5% of the first $120.00 of weekly wage up to a maximum of $.60 per week or $31.20 per year. The employer contributes the remainder of plan costs, if any costs remain.

How Short Term Disability Benefits Work

Benefits are paid weekly to the employee and are equal to 50% of the average weekly wage of the employee over the last 4 weeks prior to the disability. The maximum weekly benefit is $170.

Benefits become payable on the 8th consecutive day of a disability and continue for up to 26 weeks. The maximum benefit period is 26 weeks disability or during any consecutive period of 52 weeks. Benefits are partially taxable to the recipient depending on the percentage of contribution by the employee.

Private or Self-Insured Short Term Disability Benefits Law Plan

1. The employer plan must offer benefits at least equal to the state mandated disability benefits law.

2. The employer can charge the employees the same or less than the state mandated disability benefits law mandated contribution level. Employees cannot be charged more unless there have been improvements in coverage.

3. The employer must agree to cover the balance of the state mandated disability benefits law level of plan costs that are in excess of employee contributions.

4. The employer must agree to provide a guarantee bond, if required by the state.

5. The employer must agree to pay all obligations, including benefits, fines, expenses, and assessments imposed pursuant to the state mandated disability benefits law.

Call us at: 800-514-3513 to compare your rates

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