The first workers’ compensation model has roots in ancient Sumeria. In 2050 B.C., the king provided financial provisions to those injured during construction accidents. Over time, the model spread to other Arab countries, as well as Chinese, Greek, and Roman cultures. Fast forward thousands of years to the United States of America, when the insurance model became a major part of the employee protection landscape in 1911. Today, companies of all backgrounds provide this essential business insurance policy to their staffers.
Financial Loss Concerns
Builders in ancient times soon realized they could not complete the construction of homes, government buildings, and other structures if their workers sustained injuries. If deadlines weren’t met, they would suffer a loss of compensation. To ensure the safety of their workers and help them recover faster, builders implemented workers’ compensation funding pools to pay for the treatment of injuries.
That model made its way to the United States in the early 1900s. Prompted by ongoing stories of factory and industrial workers become injured or dying as a result of work-related accidents, trade authorities started discussing ways to protect employees. In 1911, Wisconsin became the first state in the country to implement a workers’ compensation model. Soon, the rest of the nation followed, with Mississippi becoming the final state to establish the laws in 1948.
Why Businesses Need It
Today, many companies understand the importance of including workers’ compensation in their overall business insurance offerings. Healthy employees and safe working conditions keep productivity consistent and on track. The coverage also provides financial protection against legal claims that could financially derail a business. With most policies, employees waive filing a lawsuit if they choose to take advantage of their employer’s policy. In some states, depending on the number of employees, companies are required to offer workers’ compensation.
If you’re a business owner, having a business insurance package that includes workers’ compensation is an important priority. The experienced team at Fame Insurance Agency in Indianapolis, IN, is your trusted source for customized coverage designed for a wide variety of industries. To learn more about policy options, call (317) 383-0181 today. Visit the website for extensive information on plans to protect your company.