Know These Important Workers Compensation Acronyms

Here are the definitions of some of the most common workers comp insurance acronyms.

Every industry has its own language, and the world of workers compensation insurance is no exception.  Unfortunately, business owners who have limited knowledge about commercial insurance are often tripped up by unfamiliar insurance jargon and abbreviations.  To help you make sense of your business’s coverage, here are the definitions of some of the common workers comp insurance acronyms.

  • AWW/ADW: Average Weekly Wage/Average Daily Wage. This is the amount of money an employee earns on a weekly or daily basis.  These are the two ways that an injured employee’s earnings are calculated.  This amount serves as the basis for determining an injured worker’s wage loss benefits.
  • IME: Independent Medical Examination. This refers to a medical examination that an injured employee receives from a medical provider who has not been involved in a workers compensation case before.  The purpose of an IME is to determine the cause, extent, and treatment of a work-related injury.
  • MMI: Maximum Medical Improvement. A doctor finds that an employee has reached maximum medical improvement when their condition has improved as much as it can with treatment.  At this point, the employee will be evaluated by a doctor to see if they are permanently impaired.
  • PPD: Permanent Partial Disability. Permanent partial disability benefits are paid to employees who have a lasting impairment that could affect their ability to work and earn money in the future.
  • VR: Vocational Rehabilitation. This refers to rehabilitation that helps injured employees return to work following an on-the-job injury.  This type of rehab might include transferable skill assessments, educational courses, job search assistance, and other vocational help.

Here are the definitions of some of the most common workers comp insurance acronyms.  Do you still have questions regarding your business’s workers compensation or other commercial insurance needs?  If so, then contact the experts at PMC Insurance Group.  Our highly-trained professionals are eager to assist you with all your commercial coverage needs today.