Can You Get Temporary Disability If You are Self-Employed in NY?

If you are a self-employed New Yorker, your income is your biggest asset. But what happens if you get sick or injured? You might think about temporary disability. It is a common question! But here is a spoiler: it doesn’t cover you in every situation. The temporary disability is mainly for employees. 

The Short Answer! Yes, But Not Automatically in NY

No, you are not automatically covered. You must take action. Why the confusion? The term “temporary disability” actually means two things:

• New York Disability Benefits Law (DBL): This is state-mandated. It is insurance for employees.
• Individual/Private Disability Insurance: This is the coverage you must purchase.

Self-employed workers are not covered under the mandatory DBL program. This is the official state program. It is vital to understand this distinction. You must protect your income yourself. Nearly one in four young workers faces a long-term disability! And having no insurance policy can make the situation worse. 

Understanding NY’s Disability Benefits Law (DBL) & Self-Employment

The DBL is New York’s statutory short-term disability. It provides basic income protection. This is for non-job-related injuries or illnesses. But it mostly excludes entrepreneurs.

Who is Covered Under NY DBL (Statutory Short-Term Disability)?

This is mandatory coverage.

• It covers most W-2 employees.
• It protects against off-the-job injuries.
• Maximum benefits are payable for 26 weeks.

Wait, here is the critical part! The DBL benefit is capped. It pays only $170 per week maximum. The limit hasn’t improved since 1989. Can you live on that? For most professionals, absolutely not. The crucial exclusion is you. Independent contractors are generally not considered “employees” under this law. 

The Voluntary Opt-In Option for Self-Employed

There is a state mechanism for coverage. Self-employed people can voluntarily opt-in. This includes partners and sole proprietors. You can elect to purchase combined DBL and Paid Family Leave (PFL). This means filing an application. You must purchase a specific policy. It is a formal process. This offers the basic state minimum protection.

Quick Note: Voluntary state coverage has no medical underwriting. Plus, it is administered through the Workers’ Comp Board using Form DB-820/892.

When to Get Private Short-Term Disability Insurance

Relying on the state minimum is risky. Most professionals need more. Private disability insurance offers a superior solution. It provides flexibility and real income replacement.

Why Private Coverage is Superior for a Freelancer or Business Owner

Private coverage is tailored to your business.

• Higher Benefit Amounts: You need real replacement income. Private plans can replace 60-70% of your actual income.
• Customizable Duration: You choose the payout length. Typically, 6 months, one year, or two years.
• “Own-Occupation” Protection: Some policies protect your specific job. A surgeon gets paid if they cannot perform surgery.
• Long-Term Protection: Short-term plans pair well with LTD policies. This protects your income for many years.

Statistically, self-employment is a riskier path. Workers with a disability are more likely to be self-employed. Furthermore, New York workers with disabilities can earn significantly less annually. Protection is more than just a preference!

Key Factors to Consider When Buying a Policy

This is where you customize your safety net.

• Elimination Period: How long do you wait for benefits? Shorter waits mean higher cost.
• Benefit Amount/Percentage: What percentage of your income do you need?
• Riders and Features: Look for future income increases. Check on cost-of-living adjustments.

Compare Your Options: Statutory vs. Private Disability

Feature	NY DBL (Statutory)	Individual (Private) Short-Term Disability
Eligibility	Opt-In Required for Self-Employed	Must Apply & Qualify (medical underwriting)
Max Weekly Benefit	$170 (Very Low)	Much Higher (60-70% of income)
Max Duration	26 Weeks	Customizable (e.g., 6 months, 1 year, 2 years)
Cost	Fixed rate based on state formula	Variable based on age, income, and health
Job Protection	No (DBL provides income, not job protection)	No (Must be protected separately)

Next Steps to Protect Your Income

Your business needs you to be healthy. Your family relies on your income. Do not leave this to chance!

• Review your current financial safety net.
• Calculate your monthly expenses right now.

Consult with an experienced New York insurance broker. Or simply call Smart Apple. We will compare private options, negotiate rates and offer best suitable quotes. 

Quick Answers on Self-Employed Disability