The History of Workers’ Compensation Insurance

Workers’ compensation is an insurance policy that offers health and disability benefits for workers whenever they suffer from injuries and sicknesses while at work. Employers consider the insurance policy as a system based on experience that promotes the prevention of injuries through higher premium payments by employers who have employees who suffer a bigger incidence of work-related injuries.

Many areas in the United States require employers to obtain workers’ compensation for their employees. However, there are also some states that do not require employers to acquire workers’ compensation for their employees. Although workers’ compensation is normally acquired through private insurance companies, there are some states that require employers to obtain the insurance through a workers’ compensations system operated by the state.

Who Regulates Workers' Comp Laws?

Workers’ compensation is a state-regulated social insurance system that offers limited wage replacement for temporary or permanent loss of wages resulting from injuries and sickness while at work.

Where Did Workers' Compensation Originate?

Workers’ compensation began in Germany during the 1800s before it was brought to the United States in the 1930s to the 1940s. The system makes employees aware that they will be compensated when they suffer from injuries while working without having to file a lawsuit against their employers. Before the workers’ compensation rules were established, the only way employees could receive compensation for job-related injuries was to sue their employers. The establishment of the workers’ compensation system has ensured that the rights of employees when they suffer injuries while working are protected. It also ensures they receive compensation based on the provisions offered by the state.

Laws associated with workers compensation will vary from one state to another. For instance, the statutes and requirements when it comes to workers’ compensation of two states may be different from each other. It is essential for employees to seek the advice from insurance agents and legal assistance from a workers compensation lawyer in their State to obtain the latest information in connection with the requirements for workers’ compensation.

How is an Employer's Premium Determined?

The rate of every 100 payroll is the basis for the workers’ compensation premium. It will also be determined by the job classification of the employees of a business. A number of premium modification features have been formulated throughout the year to balance out the premium payments of employers. The history of the employer is also taken into consideration along with the job classification and size of the premium.

The Objective of Workers' Compensation

The main objective of workers’ compensation is to take care of health-related expenses that result from injuries while at work. It also provides financial support for employees who are still recovering from their work-related injuries. Since employers have the sole responsibility of paying for the premiums of workers’ compensation, employees are generally not allowed to file lawsuits against their employers when they suffer injuries or illnesses while working. Although workers compensation is sometimes considered as an employee benefit, it is a state-mandated right of employees. All health-related expenses along with lost wages associated with injuries experienced while working are handled by the coverage for workers’ compensation since it is a mandated right of employees.

For any legal assistance on your claims, you should consult with an experienced workers' compensation attorney.

About James M. Hoffmann

James M. Hoffmann is a Missouri workers' compensation attorney with over 20 years of experience and over $25 Million actually collected on behalf of his clients. To contact the Law Office of James M. Hoffmann regarding a free case evaluation, call (314) 361-4300.