How was workers compensation implemented?
Workers compensation is a type of insurance that gives medical and disability benefits for employees or workers that might get injuries and diseases at work. Workers compensation insurance is required in almost all states in United States including Missouri, Illinois, Florida, Georgia, California and many more, but not required in Texas. Usually workers compensation insurance can be obtained through independent insurance companies. However there are two monopolistic states where you can get your workers compensation through the state run workers compensation system and these are in Montana and Wyoming. Workers compensation is a social insurance system that falls under the state regulations that offers partial wage replacement for permanent or temporary loss of earning for accidents and illnesses that workers get while doing their jobs.
The idea of workers compensation started in Germany in the 1800s, and became common throughout the United Sates in the 1930s and 1940s. Workers compensation gives workers the peace of mind that during work, risks are taken care of without them having to sue their employers. Before the workers compensation was implemented, the only way for injured workers to solve their problems was to sue their employers. But because of the development of workers compensation, the workers no longer had to worry about suing their employers because they are now assured that injuries will be taken care of.
Some state like Missouri and Illinois have different laws about workers compensation. In these states, each employer should ask their insurers for the latest information about workers compensation requirements making sure that they are up to date. Regarding the cost for workers compensation, it is usually based on rates per $100 of payroll and it usually depends on what type of job a workers falls under. Premium adjustment factors have always been done to help the employers with their costs depending on the loss, premium size, type of job and history.
Workers compensation’s importance and use is to cover medical expenses caused by injuries and give workers financial support during their recovery. This motivates businesses to accept the responsibility for all premium costs of workers compensation instead of the workers suing them for the injuries caused by their jobs.