In fact, workers’ comp is rooted in ancient history. Laws in ancient (B.C.) Greece, Italy, the Middle East and China detailed exact sums for injured body parts—for example, losing a thumb joint was half the value of losing a finger! During the early 20th century, Americans in dangerous working conditions demanded changes. Eventually, the first workers’ compensation system in America became law in 1908
Nowadays, workers’ comp rules may be more complex, but the basic concept is the same: Insurance companies reimburse employees for time missed due to injury on the job. Both employers and employees are protected: Insurance covers medical costs of most work-related injuries, along with a percentage of wages lost during an employee’s recovery; employers are shielded from liability.
Workers’ comp can cover:
- Missed wages if your employee is injured or disabled at work.
- Medical costs if your employee is injured or disabled at work.
- In some states, medical costs for your employee who has a work-related illness.
Each state has its own workers’ compensation laws that you, as an employer, must follow.
The two largest factors in the cost of Workers’ Comp are Classification and Experience Modifier.
