Worker’s or Contributory Negligence: If it was proven that the injury was an employee’s fault, the employer was not liable to make any compensations. This was the case regardless of how hazardous the workplace was.

Fellow Workers’ Blame. An employee was also not eligible for compensation if the injury they sustained was caused by a colleague employee.

In the 19th century, Prussian Chancellor Otto von Bismarck brought the Sickness and Accident Law to action, including the Employers’ Liability Law of 1871. The law offered employees limited protection in selected factories, railroads, mines, and quarries. Other laws in the act included Workers’ Accident Insurance of 1884, Public Pension Insurance, and Public Aid. In the 19th century, European nations adopted similar systems. The most similar was England’s Workers’ Compensation Act initiated in 1897.
In the US, workers’ compensation policies came to being in the 20th century. In 1908, the Federal Employers Liability Act was adopted. It gave railroad employees compensation if the evidence presented proved that an injury was out of negligence. The first state to pass a comprehensive workers’ compensation law was Wisconsin in 1911. It took 37 years for all the 50 states to pass the law. The state of Mississippi was the last in 1948 to adopt a workers’ compensation act. Across states, these laws were similar and wanted employers to offer wage and medical coverage benefits for every injured employee. In 1990, Congress passed the Americans With Disabilities Act. The law required all workplaces to be accessible to the handicapped. Also, workplaces were required to possess disability reasonable accommodations. In the 21st century, compensation laws inthe US hold a crucial part of employee protection policies. The law requires coverage for both part-time and full-time employees.

• Medical expenses such as hospital visits, emergency surgeries, and medication.
• Disability benefits for injuries that cause any permanent or partial disabilities.
• Partial lost wage coverage. Particularly when a worker needs time away to heal from the injuries or diseases related to a workplace.
• Death survivor benefits for family members. Covers some costs such as funeral money.
• Ongoing care coverage to ensure the employee is fully catered to while in the recovery process.
• Access to training in work safety skills, reducing the risk of sustaining injury while at work.
• Paid benefits regardless of who is at fault for the accident.

How Workers’ Compensation Insurance Works

Workers’ Compensation Insurance is a form of an insurance policy. It covers the employees, the business, and the employers. For the employees, the policy gives medical care and wages in the event of a workplace injury. Payments are made when the business, employer, or insurance company proves that an injury was work-related. A judge can be involved only when the worker’s claim is disputed by both the employer and the insurance company. Workers’ compensation is paid for by the business or the employer. Employees aren’t required to contribute any funds.

• The employee reports the work-related injury or illness to the employer.
• The employer gives the employee paperwork to fill the claim details including the injury or illness sustained, the date and time of the injury, and the employee statement.
• If the employer approves the claim, he notifies the policy provider. If need be, the employer is required to report to the state workers’ compensation board. This requirement varies depending on the state the claim is being made.
• If the injury or illness is severe, the employer is required to report it to the Occupational Safety and Health Administration.
  Note: It might be a requirement for the employee to appear before the workers’ compensation board to present their case.
• If the insurer agrees to the claim, compensation for the injuries are made. The worker can accept the payment offer, which can cover disability payments, medical bills, and wages lost. However, employees have a chance to negotiate the payment to an amount they’re comfortable with for the injuries sustained. Once the employee recovers from the sickness, they can report back to work.

• State: Each state has its unique statutes guiding the implementation of workers’ compensation policy. In some states, the cost of coverage will be low and high in others.
• Industry: The coverage cost will be high in high-risk fields such as mines, quarries, and construction companies. It will be low in low-risk work environments such as people working from an office.
• Number of Employees: The higher the number of employees in an organization, the higher the cost of implementing workers’ compensation insurance.
• The insurer will also use your organization’s safety records to determine the cost of the preferred workers’ compensation scheme adopted. If the records indicate high chances of work-related injuries taking place, the cost of the insurance policy will also be high.
• Consider the experience and status of the selected insurance company. Experienced companies help their clients select policies that are pocket-friendly and covers the best interest of the employees.