History
This problem was first addressed in Europe during the 1800s, and by the turn of the century the movement had spread to the United States and Canada. Laws were enacted to provide workers injured on the job with prompt, equitable, and guaranteed benefits. Injured workers received medical care and disability income irrespective of fault. Employers, in turn, were protected from potentially catastrophic loss by a stated amount of specific benefits for the injuries suffered by the employee. The worker was prohibited from filing suit while the employer was obligated to pay the mandated benefits. Only a few large employers had sufficient resources to guarantee injured employees these mandated benefits without endangering solvency. Therefore, the vast majority of employers purchased insurance protection against these liabilities. Insurance was a necessity to stabilize the increasing mechanization of the business community. |