AFAIK there are two common types of long-term disability policy:
1. You are covered if you can't do your current job.
2. You are covered if you can't do any job.
Every employer who has ever offered me this benefit offered the second version, which is great, but it certainly won't help replace my current income if I can't perform the job I have now.
A policy that covers your exact occupation is the best. It's easier to get when it's an occupation underwriters really understand. For instance a surgeon can easily get an occupation-specific policy because it would be easy to determine that damage to her hands would cause her to lose her income producing work.
It's harder to get a similar policy for say, an entrepreneur. What part of our body allows us to do what we do?
Thus, most startups that get a policy have to get the 2nd type--if you can work elsewhere after an injury, you don't qualify. There's one addendum, however, that is still crucial. You can get a policy that requires the new job have a similar income level. Thus, if you were only able to do work at a 70% decrease in salary, the policy would be triggered and you'd receive your benefit.
I'm not sure how you prove that you are partially disabled for any job that is primarily mental rather than physical. For example I once worked with a guy that was a lead software engineer. Shortly after he was hired, he got into a car accident and sustained a serious concussion. He claimed that after the concussion he could write basic code, but he didn't have the ability to concentrate enough to solve difficult problems or architect complex systems. How is an insurance company supposed to determine his level of disability? They don't really have a baseline to determine how strong of an engineer he was before the accident. Are they obligated to pay the difference between the salary of a junior and senior level engineer if he gets fired?
I'm not a WC attorney but my brother is so take this with a grain of salt, but my understanding is that adjusters will work to evaluate you to determine the legitimacy of your claim. This goes for just about any kind of claim, but you can bet that if you are making a claim that can add up to hundreds of thousands to millions of dollars over your lifetime, they are going to expend some effort to make that determination. This would involve experts in the field evaluating you through tests and interviews.
1. You are covered if you can't do your current job. 2. You are covered if you can't do any job.
Every employer who has ever offered me this benefit offered the second version, which is great, but it certainly won't help replace my current income if I can't perform the job I have now.