Workers Compensation
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Almost every business in the United States that has employees has to be concerned with workers’ compensation. Most states essentially require employers to purchase an insurance policy to handle their statutory obligations to workers who are injured or made ill due to a workplace exposure..
Workers’ compensation requirements in the United States began early in the 20th century, back in 1911. Before then, workers who’d been injured or made ill on the job had to take legal action against their employers, resulting in a system that simultaneously made it difficult for workers to obtain compensation for such injuries and yet exposed employers to potentially devastating financial penalties under the tort system.

But beginning in 1911, an historic compromise solution was devised by the various states. A "no fault" system was enacted which intended to make sure workers received fair and prompt medical treatment and financial compensation for workplace injuries and illness. This compromise system also established limits on the obligations of employers for these workplace exposures, so that the costs could be made more predictable and affordable.