How Workers’ Compensation Insurance Started

​Employees receive benefits from workers’ compensation insurance for injuries that happened on the job. The majority of states deem it mandatory coverage. Therefore, the law obligates several businesses that have workers as employees to buy workers’ compensation coverage.

Origin of Workers’ Compensation Laws
Before they enacted the workers’ compensation laws, US workers had to face several hazards related to employment. Plenty of them toiled in dusty mines, offices prone to fire, and dirty factories. A multitude of workers not only suffered severe injuries but also got killed on the job.

Survivors and injured workers that wanted compensation for the injuries they acquired only had the option of having their employer sued. Some employees took this step, mostly because lawsuits cost too much, and most of them lacked the necessary funds. Additionally, employers also had the power to put employee lawsuits down with one of the three defenses stated below. These defenses were often known as the “unholy trinity,” because it was always so challenging for injured workers to overcome them:

• Assumption of Risk – when the worker agreed to employment, he or she assumed the included risks of the job.
• Contributory Negligence – what contributed to the injury was the employee’s negligence.
• Fellow Employee Negligence – a fellow employee’s negligence caused the injury of the worker.

The Grand Bargain
Between the employees and the workers, they often referred to workers’ compensation laws as the Grand Bargain. Via their insurer for workers’ compensation, the requirements necessitate the employers to provide coverage and benefits to the workers that got injured on the job. If the employers follow the regulations, injured workers protect them from lawsuits.

In almost all the states, they intend that the sole remedy for those that get injured on the job is workers’ compensation insurance. Therefore, the law protects employers from being sued by employees for work-related injuries if they have coverage from workers’ compensation insurance.

Laws Cover Most Workers
Despite the laws covering a vast majority of workers, they still have a few exceptions, which may somewhat vary from state to state. Most states often exclude individuals with insurance from a federal workers’ compensation program such as agricultural employees, domestic workers, and independent contractors.

One hallmark of workers’ compensation insurance is that it provides benefits regardless of who is at fault. The policy would offer coverage for workers with job-related injuries, even if it were due to their negligence or fellow workers’.

At CSIS Insurance Services, Inc., we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (888) 501-2747 or Click Here to request a free quote.