Insurance & Employee Benefits
Workers compensation has been one of the oldest insurance programs in the United States dating back to the early 1900’s. It provides monetary compensation to the employee for work-
Today, all state governments require employers to carry workers compensation to protect their employees. It is a far more effective system for remedy than the process of litigation exercised prior to the establishment of workers compensation. Before the nineteenth century, most workers had no insurance coverage for injuries while on-
Although the employees could obtain restitution in court for their injuries, the process of litigation was often unfavorable. Lawsuits were not only tedious and drawn out, but also expensive. Furthermore, employers were often able to escape liability and avoid paying compensation to the injured workers through the use of certain defenses, such as the contributory negligence defense. This defense removed the worker’s right to collect compensation if they had in any way caused or contributed to their own injuries. All these obstacles made it very difficult for employees to recover. The solution was the creation of workers’ compensation.
The establishment of workers compensation eliminated many of the problems of the past. Workers are entitled to recovery for injuries or diseases as long as they were related to the job. Workers’ compensation follows a no-
Written By Kevin Chang,
Edited by William F. Schaake, CIC, CRM of Group Coverage, Inc. ©2010