What is the purpose of a second injury fund?

• A. A workers compensation program designed to pay for any additional benefits when an employee with a previous injury suffers a second injury
• B. A fund to reimburse employers for safety training
• C. A reserve for administrative expenses
• D. A reserve for disability benefits only

Answer: (A)

The second injury fund exists to share the financial risk when a worker who has a prior impairment suffers a new injury. If the second injury combines with the preexisting condition to create more disability than either injury alone, the fund provides the additional benefits that arise from that combination. This helps employers (and their workers’ comp insurers) by covering the incremental liability, making it feasible to hire and retain workers with prior injuries. It’s funded by employer premiums and managed by the state workers’ compensation system. So the fund’s purpose is to pay the extra benefits that come from a second injury to someone with a previous injury.