Disability
Disability insurance in New York
Disability insurance replaces part of your income when illness or injury stops you from working. New York employers must provide statutory short-term disability, but it pays only 50 percent of wages up to a low weekly cap. Private short-term and long-term policies exist to close the gap between that cap and what you actually earn.
Who this is for
- Anyone whose household could not absorb several months without their income
- Self-employed people, who have no statutory coverage at all
- High earners, for whom the statutory cap replaces a trivial share of income
- Employers who need to satisfy the New York DBL requirement
Who it is not for
- People already covered by an adequate employer long-term disability plan, though it is worth checking what that plan actually replaces
- Anyone who could retire tomorrow without the income
What it covers and what it does not
| Covered | Not covered |
|---|---|
| A percentage of your income while you cannot work | Injuries covered by workers’ compensation, which are work-related |
| Illness and off-the-job injury | Pre-existing conditions during a stated look-back period |
| Benefits after an elimination period you choose | The elimination period itself, which is unpaid |
Every policy differs. This table describes what these policies generally do, not the terms of any specific contract.
New York requirements
- New York requires most employers to carry statutory disability benefits coverage, known as DBL, for off-the-job injury and illness.
- Statutory DBL pays 50 percent of average weekly wages up to a maximum of $170 per week, for up to 26 weeks. That cap has not been raised in decades and replaces a small fraction of most New York salaries.
- Paid Family Leave is separate from DBL, funded by employee payroll deduction, and pays a materially higher percentage of wages. The two cannot be taken at the same time, and the combined total is capped at 26 weeks in a 52-week period.
- Because the statutory floor is so low, private short-term and long-term disability coverage in New York is usually the actual income protection rather than a supplement.
What it costs
Private long-term disability commonly runs 1 to 3 percent of the income being insured per year. Statutory DBL for an employer is priced per employee and is a small fraction of that.
What moves the number
- Occupation class, which is the largest single factor
- Benefit amount and how long benefits pay out
- Elimination period before benefits begin
- Age and health
- Whether the definition of disability is own occupation or any occupation
Common questions
I have DBL through work. Is that enough?
For most people, no. Statutory DBL is capped at $170 per week, which for anyone earning a normal New York salary replaces a small fraction of income and runs out after 26 weeks. It was never designed to be a household’s actual income protection.
What is the difference between short-term and long-term disability?
Short-term coverage picks up quickly, usually within days or weeks, and pays for months. Long-term coverage starts after a longer elimination period, often 90 days, and can pay for years or to retirement age. They are commonly layered so one hands off to the other.
Does disability cover an injury at work?
No. A work-related injury is covered by workers’ compensation. Disability insurance covers illness and injury that happens off the job.