Function

• Accidents and injuries can occur on the job, as well as in the course of everyday life. And while an emergency savings fund can provide needed financial reserves should an accident occur, being out of work for two to three months at a time can quickly drain available resources. Short-term disability insurance is designed to pay out a certain percentage of a person's regular paycheck for a predetermined period of time, according to the HCV Advocate. In some cases, an employer will make short-term coverage available as a way to provide protection for injured employees in cases where sick leave days run out.
  
  

Benefits

• Short-term disability benefits can vary depending on how an employer structures its insurance plans. According to the HCV Advocate, salary benefits typically fall somewhere between 50 and 75 percent of a person's gross weekly earnings for a minimum of 13 weeks, meaning a person will receive at least half of their weekly earnings for a 13-week period. In some companies, salary benefit amounts are determined based on the amount of time an employee has been with the company. Someone who's been with the company for 10 years might receive 75 percent of his salary, while someone who's been there only two years may only receive 50 percent of her gross wages.
  
  

Waiting Periods

• Employers who offer short-term disability protection oftentimes have designated time periods that separate sick leave days from short-term leaves and long-term leaves. Short-term coverage is designed to pick up where the sick leave period leaves off or else go into effect immediately in cases where an employee has run out of sick time, according to the HCV Advocate. Short-term salary benefits can run anywhere from 13 to 26 weeks, depending on how a company structures its plan. In some cases, short-term disability periods may cover any existing waiting periods required before long-term coverage can take effect.
  
  

Sickness Vs. Injury

• Employers can offer short-term disability coverage through group plans or employee-purchased plans, according to Insure.com, an insurance reference site. These two plan types differ in terms of who actually pays for the plan. Group plans are paid for by the employer, whereas employee-purchased plans are optional and plan premiums are paid by the employee. Group plan coverage
  
  falls within the "guarantee issue" category, meaning no medical examinations are required. For both types of coverage, an injured employee may have to wait anywhere from one to 14 days before benefits start. In cases where an employee suffers from an illness, longer waiting periods may apply. The longer waiting period gives employees time to provide medical documentation that verifies the condition.