HomeDisability InsuranceWhat is the difference between disability insurance and workers' compensation?
Disability Insurance
What is the difference between disability insurance and workers' compensation?
Workers' compensation covers injuries and illnesses that occur on the job or as a direct result of your work. It does NOT cover disabilities caused by illness, off-the-job accidents, or conditions unrelated to work. The vast majority of disabilities (90%+) are caused by illness — not workplace accidents. Individual disability insurance covers you regardless of whether your disability is work-related. For most people, workers' comp provides little real protection against the most common causes of disability.
Key Points
- Workers' comp covers only on-the-job injuries and work-related illnesses
- Does NOT cover illness, off-the-job accidents, or non-work-related conditions
- 90%+ of disabilities are caused by illness — not covered by workers' comp
- Individual disability insurance covers you regardless of cause
- Workers' comp benefits are typically lower than individual disability benefits
- Self-employed people often don't qualify for workers' comp at all