What Is Unemployment And Disability Insurance? 
Unemployment insurance is insurance paid for by an employer to cover some income losses by an employee if that employee is terminated due to an employer 's no longer needing the employee . Disability insurance is insurance that can be purchased and paid for either by an employer or an individual employee -LRB- or both -RRB- and it covers lost income for the employee if he or she becomes too sick or injured to work . 