What is absence insurance?
If your employee becomes ill, you, as an employer, are required to continue paying their wages for two years. This is known as the obligation to continue paying wages. The costs associated with an employee on sick leave can add up significantly.
In addition to continuing to pay wages, you may also incur costs for temporary staff, potential lost revenue, costs related to managing absences, and reintegration costs. Especially if your organization isn’t very large, it isn’t always easy to cover these costs. That’s why you can take out absence insurance. With absence insurance, you’re covered for the costs incurred when your employees become ill.
What counts as absenteeism?
There are different types of absenteeism. The most common is sick leave. Absenteeism and sick leave are often considered the same thing, but absenteeism is not always related to illness. Absenteeism means that an employee fails to work for any reason. Absenteeism due to illness occurs when an employee is unable to fulfill their employment contract due to demonstrable medical reasons. These can include physical ailments, such as the flu, as well as mental health issues and personal circumstances.
There different types of sick leave, namely:
- Short-term absenteeism
- Frequent short-term absenteeism
- Long-term sick leave
- Unauthorized absence
If your employee calls in sick, it is important for you as an employer to understand the reason for absenteeism. Sometimes the same employee reports sick several times a year (frequent short-term absenteeism). Although in principle you do not have to do much in the case of repeated short-term absenteeism, it is smart to see this repetition as a signal. Frequent short-term absence often precedes long-term absence. By understanding the reason, you can anticipate it and look for a solution to help the employee.
What does absence insurance cover?
Absenteeism insurance typically covers the costs of continued salary payments to a sick employee for the first two years. However, there are additional costs associated with a sick employee, as your employee will likely return to work after the absence. For this reason, some insurers also include the following costs under the coverage of absenteeism insurance:
- The employer charges
- The absence management
- The reintegration
Coverage may vary by insurer, so always check with your insurer's policy conditions.
Sign up for sick leave insurance right away through Alpina!
At Alpina.nl you Alpina.nl easily request a no-obligation quote for sick leave insurance using our online comparison tool. To request a quote, simply enter some information about your company. The quote will include an overview of the various insurance options, allowing you to easily compare premiums for sick leave insurance on your own.
Do you have any questions about sick leave insurance or requesting a quote? Please don’t hesitate to contact us!
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