What is a compensation claim?
Compensation claim or workers compensation is one form of insurance that provides compensation of medical care for employers who where injured on they work, in exchange workers can sue his or her employer for tort of negligence.
Compensation claim in U.S. first began in 1911 during so called Progressive era, generally injured workers had to file suit against employers and it was usual for tort of negligence and it was big drawback for workers, at the same time successful suit would made unpredictable cost for employers. This trade-off was known as the “workers’ compensation bargain” that is when worker traded his or her right to bring tort suit against employer in exchange for disability payments and medical care.
For commercial insurance market compensation claim is major business although it sometimes make problems for insurance industry, premiums can be very large but some
insurers find it hard to make good profit in some states. Compensation insurance has also led to significant twist in cost, there are two types of market moves soft and hard, so employers often benefit from low premiums insurance in soft market, but when it comes to hard insurance market their premium increase much more.
When should one claim accident or injury compensation? It is always best to make your claim as soon as you are able to, and you should report your accident to local council and your employer or owner of property where accident happened. There is three year period before you can make your claim, after that it is probably too late.
If you lose your compensation claim and the other person wins, you will probably not have to pay for his solicitor’s claim.