Workers’ Compensation Ended Tomorrow – Then What?
If Workers’ Compensation ended tomorrow, what would be the result?
One of the more prolific bloggers such as myself recently published an article that was titled “Without Comp.” I started thinking what would happen if Workers Comp was completely abolished for injured workers. The most prevalent results would be:
- The loss of the no-fault part of the system. Ask Florida employers and citizens what that might be like for all of us.
- An outbreak of liability lawsuits that would clog the court systems for eons. Employers would sue negligent employees. Employers would be sued in civil court by their employees. A very large legal mess would ensue.
- AFLAC stock would blow through the roof. Disability policies would become similar to health insurance. Every worker would have to sign up for one if affordable.
- The federal government would create the Affordable Disability Insurance Act with many exchanges.
- Safety standards would have to become more strict to the point of interfering with business.
- A shift in insurance companies from WC adjusters to more liability adjusters. The retraining burden would make insurance carrier unprofitable for a few years.
- The legal system would shift to pure liability concerning injured employees,
- The vendors would have to adapt quickly, but what would the market look like after the end of comp?
- State WC systems would subsist for a few years with the claims run-off of the old claims.
- Many claims would be filed with an accident date of today. Claims filing fraud would be rampant.
And the list would go on and on…..
What do you think would be the results of WC ending tomorrow? Could it really happen?
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