Below are some commonly used terms and abbreviations related to workers’ compensation insurance.

Average Daily Wage (ADW)

The ADW is a calculation of the average daily earnings of an injured employee.

It is sometimes used to determine entitlement to loss wage benefits.

Average Weekly Wage (AWW)

This is another method for calculating entitlement to loss wage benefits. The average earning per week for a fixed period of time are calculated and wage benefits are computed by that amount.

Experience Rating

Experience Rating recognizes the differences among individual employers with respect to safety and loss prevention. The rating can result in an increase or decrease in premiums.

Permanent Partial Disability (PPD)

These benefits are payable, in most states, to an employee who has suffered a work-related injury that results in a permanent, but not total disability.

Permanent Total Disability

PTD benefits are provided for an injured employee who is totally and permanently disabled from work.

Physical Therapy (PT)

Physical therapy is a common form of medical treatment to recover from an injury at work.

Temporary Partial Disability (TPD)

When an injured employee is able to work at reduced pay despite their disability, they are eligible for TPD benefits. The benefits are allowed only for a period of  time until the employee is able to resume full employment.

Temporary Total Disability (TTD)

TTD benefits are available for employees who are totally unable to work for a period of time. When the employee is able to return to work, the benefit ends.

Vocational Rehabilitation (VR)

If a worker is unable to return to his or her previous role, the employer and employee and jointly select a rehabilitation  counselor who will see if a rehabilitation plan is available to return the worker to suitable, gainful employment.