What is workers’ compensation insurance? Workers’ compensation insurance is a specific type of insurance that helps business owners provide wages and medical benefits to employees who have been injured on the job. In most states, workers’ compensation is required by law.
The origins of worker’s compensation benefits date back to the 18th century when the oceans were ruled by pirates. The practice of privateering (an informal term to refer to piracy) was a dangerous profession. Taking loot (treasure) from those who refused to give it up involved sea battles, hand-to-hand combat, and often injury. Given the inherent likelihood of disability from this practice, a system was developed to compensate injured “employees.”
Pirate ships developed payment schedules for various types of injuries (for example, if you lost a hand, you received a replacement hook and 100 gold pieces). In addition to receiving compensation, injured crew members could remain on board and were offered less strenuous duties. As a consequence, the first return to work program was created!
Today, employers purchase workers’ compensation coverage through insurance companies (similar to purchasing auto insurance or homeowners insurance) whose policy protects employees who work for that employer. If an employee is injured on the job, the insurance company pays for lost wages and covers medical benefits (such as doctor’s appointments and medications), and other benefits.
The advantage is twofold: For the injured worker, workers’ compensation helps them on their journey to get healthy and back to work. For businesses, workers’ compensation coverage from a trusted provider means the employer will have the tools to keep their employees safe and the financial guarantee of coverage when an injury occurs.
That is the end of workers’ compensation. And it’s coverage our company has delivered with excellence for more than 100 years.
