Workers Compensation Insurance Primer

Workers Compensation is an insurance program thatlaws will vary. For example though fairly close in
provides medical and disability benefits forproximity the states of Georgia and Florida may have
work-related injuries and diseases. One of the basicdifferent laws and requirements as they relate to
premises of this insurance is an experience ratingworkers compensation. Business owners should of
system that encourages injury prevention by chargingcourse always consult with their attorneys for the
higher premiums to employers whose workers havemost accurate and up to date information.
more injuries.As for rates, they are awarded through a strict liability
While workers compensation is mandatory in most allsystem, in which the employee is paid damages for
regions including Florida, California, Georgia and others, ittheir injury regardless of whether the injury was a
is not mandatory in Texas. It is a type of insurancedirect result of an employer's negligence.
that administratively is fraught with danger to theThe sole purpose for workers compensation is to
inexperienced lay person, as well as to thecover the medical expenses accumulated by the
inexperienced attorney.injury, as well as financially support of the employee
Workers Compensation is a social insurance systemwhile they are recovering.
that gives partial wage replacement for temporary orIn order to encourage businesses to accept full
permanent loss of earnings for job-related injuries andresponsibility for the premium costs of workers
illnesses.compensation, the workers gave up the right to sue
It was first started in Germany in the 1800's andthe employer for damages resulting from a job related
became common in the United States in the 1930'sinjury. When workers compensation was first
and 1940's. Now it appears to be here to stay. Thoughproposed, a compromise was reached between
many would like to see it go away the majorbusinesses and the worker. Rather than a benefit,
impediment to eliminating workers compensation is theworkers compensation is a legally mandated right of
absence of national health insurance and disabilitythe worker. As such all medical bills relating to any
programs in the United States.on-the-job injury are covered by workers
Depending on the region in which it is being sought, thecompensation.