{"id":61956,"date":"2021-11-02T16:08:10","date_gmt":"2021-11-02T20:08:10","guid":{"rendered":"https:\/\/www.insureyourcompany.com\/?p=61956"},"modified":"2021-11-02T16:08:10","modified_gmt":"2021-11-02T20:08:10","slug":"the-history-of-workers-comp-insurance-why-it-exists","status":"publish","type":"post","link":"https:\/\/insureyourcompany.com\/blog\/the-history-of-workers-comp-insurance-why-it-exists\/","title":{"rendered":"The History of Worker’s Comp Insurance & Why it Exists"},"content":{"rendered":"

Nearly every state requires employers to carry\u00a0worker’s compensation insurance<\/a>.\u00a0 Failure to carry the appropriate insurance can result in fines and expose the business to claims from an injured employee.<\/p>\n

Why Does Worker’s Comp Insurance Exist?<\/h2>\n

Worker’s comp insurance exists because workplace injuries happen. In most cases, workers’ compensation is the \u201cexclusive remedy\u201d available to an injured worker.\u00a0 If an employee is injured, payment for their care, treatment a percentage of lost wages is guaranteed.\u00a0 In exchange, the employee gives up the right to sue their employer for negligence.\u00a0 This system ensures prompt payment of medical bills and lost salary without delays or legal proceedings.\u00a0 Employees can return to work more quickly and employers can operate without the threat of lawsuits.<\/p>\n

The History of Worker’s Comp: An American Coverage with German Roots<\/h2>\n

Worker’s compensation laws have been in place in various US states since the late 1800s. But the original idea seems to have come from\u00a0German Chancellor Otto von Bismarck.<\/a> According to the US Social Security office, von Bismarck is also responsible for the building blocks of social care for the elderly, which we now recognize as Medicare and Social Security income.<\/p>\n