Impairment Rating
An impairment rating in the context of insurance, specifically within Business Insurance or Workers' Compensation Insurance, refers to an evaluation that assesses the extent of an individual's injury or disability resulting from a work-related incident. This rating helps determine the level of compensation the individual may be entitled to receive.
Example #1
For example, if a worker injures their back while lifting heavy equipment at work and undergoes a medical evaluation, an impairment rating will be assigned to quantify the severity of the back injury.
Example #2
In another scenario, if an employee sustains a permanent shoulder injury due to a workplace accident, an impairment rating will be assigned to measure the loss of function in the shoulder.
Misuse
Misuse of impairment ratings can occur when an employer disputes the validity of an assigned impairment rating to minimize the compensation owed to an injured worker. This can lead to unfair treatment of employees and undermine their rights to adequate compensation for work-related injuries.
Benefits
The benefit of impairment ratings is that they provide an objective assessment of an individual's injury or disability, ensuring that employees are fairly compensated based on the severity of their work-related injuries.
Conclusion
Ensuring the accurate and fair application of impairment ratings is crucial in protecting the rights of injured workers and upholding the principles of transparency and fairness in Workers' Compensation Insurance and Business Insurance.
Related Terms
Workers' Compensation Insurance