A factory could be a dangerous place. The textile mills at Lowell, Massachusetts, praised by Charles Dickens in 1842 as something miles away from the horrors of similar places in Britain, deteriorated over time under economic pressure. In 1860, Pemberton Mill in Lawrence was the scene of a horrendous catastrophe. All five floors of the factory collapsed while in operation and then a fire broke out. 88 people died and 116 were injured. The defects in columns in the building had been discovered in 1854 but nothing had been done. Most accidents were naturally not of this magnitude, but could have a devastating effect on the people involved and their families.

Before the development of the welfare state and legislation protecting wages and loss of earnings through illness and accidents, the section of society depending on their ability to work had minimal ability to secure their old age. Therefore, those regularly turning to society for permanent assistance were the poor workers and their widows. The introduction of mandatory accident insurance in the early twentieth century protected workers and their families against loss of earnings and was in the end viewed in a positive light by society, as it reduced the need for poor relief.