The History of Workers Compensation Insurance

Today, workers have become accustomed to safe and secure workplace environments. They work securely, knowing that if they are injured, they will be taken care of by the company through workers compensation insurance. The only state in the nation where it is not mandatory for a company to have workers compensation insurance is Texas. However, even in Texas, most employers still choose to purchase this important insurance policy due to its importance in protecting both workers and the company from financial issued due to accidents and injuries.

The history of workers comp goes back to the 1800′s when it was introduced by Germany. It quickly spread to the U.S. and during the 1930′s and 1940′s, more and more U.S. businesses began to offer workers comp to their employees. Workers comp allows workers to work more confidently knowing that in the case of an on-the-job related injury, they will not need to sue their employers to get financial recourse. In the days before workers compensation, suing an employer was often the only recourse an injured worker had to recoup the cost of lost salary and medical costs.

The purpose of workers comp is to cover the financial costs related to an on-the-job related injury. When a worker is injured on the job, they are subject to medical bills as well as to lost wages due to time that they must take off work in order to recuperate. On the other end, a company is liable for damages if they are found to be at fault for the accident due to negligence. Workers comp is a way for both sides to protect themselves from the financial consequences of on-the-job related injuries and makes for a much more confident worker and a happier and more secure workplace.

Over the past century, workers compensation has been modified to fit the current political and financial system. The exact rules regarding workers compensation vary from state to state. The pricing for workers compensation depend on the job classification of the employee and is based on rates per 100 of payroll. Premium modification factors have been introduced to determine the amount an employer must pay for workers compensation. Factors include the loss history of the business, their premium size and type of work that is performed by the employees.

Today’s workplace is a far cry from those at the turn of the century. Before, workers lived in fear of injury and accidents. They knew that if they were hurt on the job, their employer would not financially reimburse them and they would most likely lose their job as a consequence. Today, workers walk into work full of confidence, due to the standard practice and implementation of workers compensation insurance. Workers can come and perform their duties without fear of accidents or injury. Confident workers can perform their job better and with more pride, since they understand that they are valuable to their employer. Employers that offer Texas workers compensation insurance are able to secure more skilled and valuable workers than those that do not.

To get assistance with workers compensation in Texas or California, contact Contractors Insurance Broker at 888-258-0272.