The quality or condition of being eligible for compensation or payment for loss or injury.
From 'compensate' (from Latin 'compensare', com- 'together' plus 'pensare' 'to weigh') plus '-ability' (quality of being). Used in legal and insurance contexts.
Workers' compensation laws hinge on 'compensability'—whether an injury qualifies for payment—a concept that evolved from industrial accidents in the 1800s.
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