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Failure to do that, or remove a tag that wasn’t yours, was a firing offense where I used to work. I wonder if their insurance covers stupidity?

This is a workers compensation claim which provides absolute liability coverage to the employer for work incurred injury even when caused by a fellow employee. The act of stupidity was not having someone posted at the switch to prevent this from happening while the machine maintence was being done. The foreman/supervisor on the job is who bears primary responsibility for this dumb ass action to occur, IMHO.

The employer is stuck with the financial cost (medical, loss of income) of the injury which will be paid by the workers compensation insurance company and in the following three years will pay an experience modification increase in wc premium for the cost of loss > medical, loss of income > probably about $300k or more.

I disagree. A machine such as an industrial wood chipper likely would have a means to padlock the power switch as well as being red-tagged. If the injured worker did not take these steps before climbing inside, he’s not very bright. With those protections taken, the only reason why another person would be guarding the switch is that it’s a union shop and they’re featherbedding.