1. . www.InsuranceCommunityUniversity.com What this class will cover 1.The evolution of Workers’ Compensation laws in the U. S. 2.Workers’ Compensation coverage concepts 3.Basics of providing Workers’ Compensation coverage 1

2. . www.InsuranceCommunityUniversity.com Before There Was WC in the US 2 Relied upon other resources, such as charity Employees often had no resources to sue Employees had to sue employer for negligence or some other form of tort for injury or illness

3. . www.InsuranceCommunityUniversity.com Foundation of WC Laws in the US 3 Wisconsin first state in 1911 All by 1948 No fault coverage / statutory benefits Employers protected from lawsuits Exclusive remedy

4. . www.InsuranceCommunityUniversity.com 4 Objectives of WC Laws Provide reasonable benefitsReduce lawsuitsEncourage safety

5. . www.InsuranceCommunityUniversity.com WC Legal Concepts Strict liability No need to prove negligence by employer Employee retains some legal rights to sue employer Employer assault Fraudulent concealment of injury Injury / illness caused by employer product Employer removal of safeguards 5

6. . www.InsuranceCommunityUniversity.com Employers Liability Some states WC not mandatory for one or two employees On the job injury NOT occupational disease or AOE/COE Some states permit suits and recovery by spouses for damages (loss of consortium, comfort and affection) Third party "Action Over" suits (non- contractual) Exception to “exclusive remedy” to the degree not excluded from policy 6

7. . www.InsuranceCommunityUniversity.com IRS Guidelines Does employer set the times and places of work Does employer provide the tools, equipment, vehicles, materials for the job Does employer provide training Does employer reimburse for expenses Does employer file W-2 or 1099 7