The Second Injury Fund is a government program established to provide compensation to workers who have a pre-existing disability or impairment that is aggravated by a subsequent workplace injury. The program is designed to encourage employers to hire workers with disabilities by providing a mechanism for sharing the cost of compensating an employee who sustains a workplace injury that aggravates an existing disability.
In the insurance industry, the Second Injury Fund is often used as a mechanism for allocating the costs of workers' compensation claims. The fund is typically financed through assessments on insurance companies and employers, and is administered by state government agencies. When an employee with a pre-existing disability is injured on the job, the Second Injury Fund may be called upon to pay a portion of the compensation owed to the worker.
The Second Injury Fund is intended to promote the hiring of individuals with disabilities by reducing the financial risk of doing so for employers. However, the program has been subject to abuse in some cases, with employees falsely claiming pre-existing disabilities in order to obtain compensation from the fund. Additionally, some states have scaled back their Second Injury Fund programs in recent years due to concerns over rising costs.
Second Injury Fund
Insurance Term
The Second Injury Fund is a government program established to provide compensation to workers who have a pre-existing disability or impairment that is aggravated by a subsequent workplace injury. The program is designed to encourage employers to hire workers with disabilities by providing a mechanism for sharing the cost of compensating an employee who sustains a workplace injury that aggravates an existing disability.
In the insurance industry, the Second Injury Fund is often used as a mechanism for allocating the costs of workers' compensation claims. The fund is typically financed through assessments on insurance companies and employers, and is administered by state government agencies. When an employee with a pre-existing disability is injured on the job, the Second Injury Fund may be called upon to pay a portion of the compensation owed to the worker.
The Second Injury Fund is intended to promote the hiring of individuals with disabilities by reducing the financial risk of doing so for employers. However, the program has been subject to abuse in some cases, with employees falsely claiming pre-existing disabilities in order to obtain compensation from the fund. Additionally, some states have scaled back their Second Injury Fund programs in recent years due to concerns over rising costs.