Longterm Disability Requirements for Small Business Owner

cmcalpine

What are the requirements of an employer when an employee develops a long term illness?  In other words, for a small business owner, that does not currently have long term disability insurance (themselves, or offered to their employees), is there any legal employer requirements to continue to support this person when they are no longer able to fulfill their occupation?

NYGiants

I believe it should depend on the terms of your insurance -- i.e., term of coverage should be clearly spelled out and terms under which coverage will terminate (and how). You may also have to extend insurance (health) if you are covered under state or federal family leave laws. Check your state law re: benefits coverage. Finally, if you are subject to the ADA and the employee has a disability for which accommodation is available (i.e. it will enable the employee to eventually return to work and does not impose an undue burden on the employer), then you may be required to extend leave or another accommodation. Hope this helps. 

cmcalpine

What if the business has no "long term disability" insurance?  Would it simply fall under "other" insurance - such as liability insurance, or personal insurance?

ERISAmaven

There is no requirement that employers provide long-term disability insurance. Any health insurance coverage that must be provided will be governed by the business's health insurance policy, state insurance law, and COBRA if the employer has 20 or more employees. The only way that the employer could have liability is if the employee's illness is work related in which it would be covered by workers' compensation insurance.