That being said, employers are not required under state or federal law to provide long-term disability insurance to their employees, although many states require companies to pay a premium for state disability insurance as part of the compensation cost of all of its employees, says Schwartz, whose second web site is www.disabilityinsurancelawyers.com.

Although disability insurance is generally not required of employers, it’s wise to secure it for at least two reasons, says Tony Ciriaco, a partner in the Columbus office of Vorys Sater Seymour and Pease, LLP. When a company offers disability insurance to its employees, that company becomes a more attractive place to work, says Ciriaco. In addition, providing disability insurance to employees as a group is more cost-effective than when it is purchased individually. That’s another benefit an employer can provide that makes a company more attractive than a competitor that does not offer the insurance.

What to look for when purchasing disability insurance
Both experts offer tips to employers interested in providing disability insurance to their staff.

Schwartz advises employers to research policies that would cover just the boss and policies that provide coverage for employers and their staff. While individual policies are more expensive and comprehensive than group coverage, the latter is priced far more reasonably.

“The best way to procure such insurance is to speak with an experienced and qualified agent or broker who sells long-term disability insurance,, preferably someone who is able to sell insurance from multiple companies, not just as the agent of one company,” says Schwartz.

Another consideration is who pays for the coverage. Certainly it’s to an employer’s advantage if employees pay for disability insurance, but it is likely staff members won’t be too keen on that. However, the distinction about who pays is an important one.

According to Ciriaco, if an employee pays for his or her own disability insurance premium individually, and they receive benefits under the policy, they receive those funds tax-free. If the company pays for the insurance, it can claim the cost as a tax deduction and the employee who receives benefits under the policy does not receive funds tax-free.

But money is not the only factor an employer should weigh when considering disability insurance.

An employer should seek a policy that defines the term “disability” favorably to company owners or specific occupations, advises Ciriaco.

It may not be mandatory, but it is important
Although disability insurance is generally not mandatory, it is extremely invaluable for company owners to buy, says Schwartz. So much so, that he values it over life insurance.

That’s because statistically, a person is “far more likely to become unable to work for some period of time than you are to die before your life expectancy. My advice to the business owner who needs to protect their income is to spend more money on premiums for long-term disability insurance, and buy an inexpensive term life insurance policy,” says Schwartz.

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Tami Kamin Meyer is an Ohio attorney and writer. She may be reached at This email address is being protected from spambots. You need JavaScript enabled to view it. or @girlwithapen.