Second Injury Fund

Example

“Thanks to the Second Injury Fund, the manufacturing company hired Robert despite his previous back injury, knowing they wouldn't be liable for the combined disability costs if he suffered another workplace injury.”

Memory Tip

Remember '2nd INJURY = SHARED COST' - the second injury fund shares the cost burden so employers aren't afraid to hire people with first injuries.

Why It Matters

Second Injury Funds promote employment opportunities for people with disabilities while protecting employers from excessive liability. This creates a more inclusive workforce and ensures that disabled individuals aren't discriminated against due to insurance cost concerns.

Common Misconception

Many people believe Second Injury Funds still operate widely today. However, most states have closed these funds to new claims since the 1990s due to high costs and administrative challenges, though existing claims continue to be paid.

In Practice

In 1985, Tom lost sight in his left eye in a car accident. When hired by ABC Company in 1990, his employer wasn't worried about workers' comp costs. In 1992, Tom suffered a workplace eye injury that blinded his right eye, making him totally disabled. ABC Company's workers' comp paid benefits as if Tom only lost sight in his right eye ($75,000). The Second Injury Fund paid the additional $200,000 difference to cover Tom's total blindness disability, protecting ABC from the full $275,000 liability.

Etymology

Established in the early 1900s as states recognized that employers were reluctant to hire workers with disabilities due to fear of excessive workers' compensation costs if a 'second injury' occurred on top of pre-existing conditions.

Common Misspellings

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