Workers Compensation Insurance

Paper Summary:

Workers' compensation is governed more directly than some types of insurance by state requirements. The paper explains that any decision regarding workers' compensation in the future will need to account for the current problems for both workers and employers. It discusses how allowing workers' compensation to be addressed through collective bargaining would, at last, bring both sides into the process, though it might slow down that process and would not solve the problems of the system. The system has to be made solvent while continuing to provide needed money to insured workers. It concludes that eliminating fraud is an essential step to assuring that the system has the money it needs and spends it in the right way.

From the Paper:

"One of the benefits HR managers can offer is health insurance, and the workers' compensation insurance differs in that it is not for normal health issues but for accidents on the job. Some health insurance is mandated by law, while workers' compensation insurance is specifically required as a way of protecting workers, though the system also should protect the employer from litigation over workplace incidents as well, as noted. Businesses have to consider a wide variety of types of insurance protection. Businesses can buy commercial general liability insurance that protects the organization against lawsuits alleging bodily injury or property damage legal liability. The policy thus insures against defense costs, awards, or settlements associated with lawsuits brought by third parties who may be injured by the business's premises operations, products-completed operations, or independent contractors: "The policy also automatically includes contractual liability insurance which causes it to provide protection to other parties whom the insured agrees in a business contract to 'hold harmless and indemnify'" (McIntyre & Gibson, 1988, p. 29). Sundheim (1988) emphasizes that such coverage is necessary because "businesses are exposed to possible liability claims from many different directions. . . To adequately protect the business, more than one form of liability insurance may be needed" (Sundheim, 1988, p. 116). The comprehensive general liability type includes virtually all of the liability insurance forms, written for most businesses, with the exception of automobile liability and worker's compensation."

More papers on Workers Compensation Insurance:

• Research Paper # 107888 : "Workers' Compensation Insurance Reform"
• Term Paper # 122933 : "Reducing Workers' Compensation"
• Essay # 28270 : "Workers Compensation Rehabilitation"

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