Employees with serious injuries or illnesses might be unable to work, which can lead to considerable financial difficulties. It’s sometimes possible for those individuals to seek benefits from workers’ compensation or disability insurance. These are two distinctly different systems, so it’s critical to know the differences.
In South Dakota and Iowa, workers’ comp kicks in if someone is hurt while doing their job. It doesn’t matter whether the worker caused the accident or not. What matters is that the injury happened in connection with their work. Disability policies typically cover illnesses and injuries, even if they aren’t associated with work.
Workers’ compensation
South Dakota doesn’t require employers to carry workers’ compensation policies. Employees are free to file a lawsuit against their employer if the employer opted not to carry a policy. In Iowa, employers are required to carry workers’ compensation insurance unless they have a valid exemption. In almost all cases, employees are banned from suing their employer for an on-the-job injury.
Workers in South Dakota have three business days to report an injury, but employees in Iowa have 90 days to report. Workers’ compensation in both states covers medical bills. For injuries that require the worker to take time off, partial wage replacement and vocational rehabilitation are sometimes possible.
Catastrophic injuries may be eligible for permanent disability payments. Each state has its own requirements for determining the extent of the disability and wage replacement or disability benefits.
Disability benefits
In some cases, a worker who becomes disabled may be able to file one or more disability claims that are distinct from workers’ compensation. Neither South Dakota and Iowa offer a state-run disability program. Because of this, disability claims must be made through private policies or policies offered through work. The terms for these policies vary greatly, so employees should check their benefits if they need coverage.
If the person’s injury or illness is expected to last at least 12 months or result in death, they may be able to qualify for Social Security Disability Insurance (SSDI), which is administered by the Social Security Administration.
One of the most important factors to consider when trying to determine whether a person should file for workers’ compensation or a disability insurance policy is whether the injured worker has a private disability policy available and/or meets the criteria for SSDI, and the interplay between their workers’ compensation benefits and those disability benefits. Legal guidance can help the injured sort through their options to make the best decision.