Workers Compensation Insurance Carriers: Why History Counts

Workers compensation insurance carriers are more or less the same in almost all the states. Their base rates are determined by the same factors in almost all cases.

The US worker compensation insurance carriers developed because of the industrial expansions in the 1800s. The workers who were injured through accidents were left with no other options but to sue their bosses. This is after the bosses ignored them and left them to suffer. They generally sued their bosses for workplace negligence.   

 In later years, the state developed workers compensation laws to help fight for the financial crisis of the workers. Those who were injured or those who suffered employment related problems had at least a platform to air their views. These laws covered medical expenses and lost wages for workers.

By 1949, each state had its own compensation system. All the 50 states had enacted laws that will help platform the views of the workers. After a period of one decade had passed, workers compensation coverage was expanded throughout the states which foresaw the establishment of self insurance programs

Other workmen laws were enacted in 1972, and generally covered the health and safety act of 1970 which was enacted to improve workers compensation coverage.

During the 1980s, there was a decade of total anarchy with compensation costs rising sharply leading to high insurance costs. In a nutshell, borrowing from history is vital in charting the way forward in compensation laws.


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