Workers Comp

Workers comp is an old idea; the idea that workers should be compensated when they are injured while on the job has been a question that has plagued courts, lawyers and employers for some time. Prior to workers comp when workers were injured on the job they would need to go to court and prove negligence on the part of the employer to have any hope of getting their medical bills and lost wages paid. Even if the employee could prove negligence, employers could still get out of paying their expenses based various defenses that mitigated their negligence in the matter, if the employer could prove that the worker knew the job was risky, or that they also had been negligent among other defense the worker could be out of luck and end up shouldering the burden of his bills and expenses due to the injury.

Workers comp started appearing in the early 1900's as a way for workers and employers both to be protected from mishaps on the job. Between 1911 and 1920 laws were passed in most states, which required employers to carry workers comp insurance making it the first social insurance program to be accepted and implemented in the US. At this time the federal government considered such social programs to be the responsibility of the states so such laws were passed by state governments during this time period. The passing of workers comp laws changed the workplace landscape a great deal, now workers no longer had to prove negligence on the part of the employer, nor could they be denied payment due to their own negligence.

Workers comp was generally considered to be a win-win situation for everyone involved, for the worker he was guaranteed he would get his medical bills paid, and receive two thirds of his salary for the time that he was out of work. For employers workers comp meant no more huge lawsuits and the uncertainty of having to pay costs for every employee that got hurt. Huge court settlements could ruin a company, so having insurance that paid for the bulk of the costs incurred by an injured worker equaled peace of mind for most employers. Insurance companies also were in favor of the workers comp laws as these laws allowed them to switch to selling insurance to employers rather than individual workers, allowing them to easier assess risks when selling their insurance, which resulted in more insurance being sold.

Over the years workers comp has changed a great deal, it now covers more types of workers than in past years, and companies with only a few employees now must cover their employees. The number of employees now covered by workers compensation is about 92% versus 75% in 1940. Over the years workers comp has become an important insurance fund for both employees and their employers. If you are an employer that is looking to compare insurance rates for your company or want to better understand your obligations you can fill out a free informational quote form through California Worker Comp.