Colorado Workers Compensation Benefits

Workers’ compensation benefits in Colorado do far more than cover your immediate medical bills—these protections extend to healthcare, lost wage payments, permanent disability compensation, and even disfigurement or death benefits if the unthinkable occurs. This support is especially vital for financially constrained families, where a sudden injury can threaten rent, food, and long-term stability.

You might feel confident about what you’re entitled to, but understanding how each benefit works, from Temporary Total Disability to Permanent Partial Disability and beyond, can become overwhelming quickly. Knowing the rules, timelines, and calculations behind these benefits can make a significant difference in how securely you recover after a workplace injury.

Key Takeaways

• Colorado workers’ compensation provides medical benefits covering all necessary treatment without limits on cost or time, including transportation to appointments.
• Temporary disability benefits include Temporary Total Disability (TTD) paying two-thirds of average weekly wages when completely unable to work, and Temporary Partial Disability (TPD) paying two-thirds of the wage difference for partial work capacity.
• Permanent Partial Disability (PPD) benefits are awarded after reaching Maximum Medical Improvement (MMI) based on an impairment rating and can be paid in lump sums or installments, subject to caps.
• Permanent Total Disability (PTD) benefits provide two-thirds of the average weekly wage for life if the worker cannot return to any job, without a specific maximum cap.
• Death benefits compensate dependents two-thirds of the deceased’s average weekly wage (capped at $1,396.85 as of July 2025) plus funeral expenses up to $14,206.62, with payments to spouses for life or until remarriage.

Types of Benefits Available Under Colorado Workers’ Compensation

Colorado workers’ compensation provides four core benefits to injured workers: medical benefits, lost wage and disability benefits, disfigurement benefits, and death benefits. These protections matter deeply for workers who may already rely on housing services or SNAP to keep their households stable after an unexpected injury.

Medical benefits cover every necessary treatment related to your workplace injury, with no limits on time or cost.

Lost wage and disability benefits replace two-thirds of your average weekly wage when you’re unable to work, using classifications such as Temporary Total Disability and Permanent Partial Disability to match the severity of your condition.

Once you reach maximum medical improvement, permanent disability benefits may apply — including awards up to $150,000 for partial disability and lifelong payments for permanent total disability.

If a workplace injury is fatal, death benefits provide dependents with two-thirds of the worker’s average weekly wage (up to the state cap), along with funeral and medical expense coverage.

These benefits create a financial and medical safety net that helps injured workers and their families steady their lives during a difficult and uncertain time.

Medical Benefits: Coverage and Transportation Reimbursement

When you’re injured on the job, your employer must cover all medical expenses needed to treat your work-related injury or illness, with no limits on how long or how much they must pay. This protection is especially vital for felons rebuilding their lives through steady work and for workers who might otherwise rely on cash aid to get through a financial crisis after an injury.

Colorado law guarantees comprehensive medical benefits, doctor visits, hospital care, medications, therapies, surgeries, and more, with no weekly caps and no restrictions on how long treatment can continue.

You’re also entitled to reimbursement for transportation costs to and from approved medical appointments, ensuring you don’t bear the financial burden of getting the care you need.

Courts interpret these medical benefits broadly, giving injured workers continuous access to essential treatment without time limits or financial barriers.

Temporary Disability Benefits: TTD and TPD Explained

Temporary disability benefits in Colorado include Temporary Total Disability (TTD) and Temporary Partial Disability (TPD), which differ in eligibility and calculation methods based on your work capacity after injury. TTD compensates you at two-thirds of your average weekly wage if you can’t work at all, while TPD pays two-thirds of the difference between your pre-injury wages and current earnings if you can still work partially. You must meet a three-day waiting period for TTD benefits, which can become retroactive if you’re unable to work beyond two weeks.

Definitions and Differences

Although you may be able to perform some limited work after an injury, your compensation depends on whether you’re totally or partially disabled.

Temporary Total Disability (TTD) benefits apply when you can’t work at all, providing you two-thirds of your average weekly wage, capped at 91% of the state average weekly wage. These benefits continue until you reach maximum medical improvement (MMI) or return to your regular job.

Temporary Partial Disability (TPD) benefits pay two-thirds of the difference between your pre-injury wages and your current earnings when you can work in a limited capacity. TPD continues until full duty or MMI.

Both are key workers compensation benefits.

Benefit Calculation Methods

You calculate Temporary Total Disability (TTD) benefits as two-thirds of your average weekly wage at the time of injury, subject to a maximum cap of 91% of the state average weekly wage.

TTD benefits start after a three-day waiting period and pay only if you’re off work for more than two weeks.

If you can work but earn less due to your injury, Temporary Partial Disability (TPD) benefits cover two-thirds of the difference between your pre-injury and current wages.

Both TTD and TPD benefits continue until you reach maximum medical improvement or return to work.

These calculations guide workers’ compensation claims precisely.

Eligibility and Waiting Periods

3. TTD continues until you return to work or reach maximum medical improvement,

while TPD adjusts as your earning capacity changes.

Permanent Disability Benefits: PPD and PTD Eligibility and Amounts

To qualify for permanent partial disability (PPD) benefits, you must reach Maximum Medical Improvement (MMI), at which point your impairment rating is determined by a physician.

PPD benefits vary depending on the impairment percentage and can be paid as weekly installments, lump sums, or a combination, subject to caps.

If you’re unable to return to any work due to your injury, you may be eligible for permanent total disability (PTD) benefits, which pay two-thirds of your average weekly wage for life, also subject to state limits.

Eligibility Criteria

1. You must have reached MMI, indicating your medical condition has stabilized.
2. A physician must assess and assign a permanent impairment rating that reflects your permanent injury.
3. Your ability to work determines the benefit type: PPD if you can still work with impairment, PTD if you can’t return to any job.

Benefit Amounts

Permanent disability benefits in Colorado vary based on the extent of your impairment and your ability to work.

If you reach maximum medical improvement and receive an impairment rating, you may qualify for Permanent Partial Disability (PPD) benefits, which can range from a few hundred dollars up to $150,000, often paid weekly, lump sum, or both.

Permanent Total Disability (PTD) benefits provide two-thirds of your average weekly wage for life if you can’t return to any job.

Education and work experience can also affect PTD benefit rates, while temporary disability benefits apply before reaching permanency.

Payment Methods

You can receive Permanent Partial Disability (PPD) benefits through weekly or bi-weekly payments, lump sums, or a combination of both, depending on your preference and agreement with the insurer.

Under workers compensation coverage, once you’ve reached maximum medical improvement, a physician evaluates your impairment to determine eligibility.

If an injured worker is able to work partially, PPD benefits compensate for the impairment affecting your capacity to perform some work.

For Permanent Total Disability (PTD), benefits pay two-thirds of your average weekly wage for life, capped at 91% of the state average.

Payment methods include:

1. Weekly installments for ongoing support.
2. Lump sum payments for immediate settlement.
3. Combination payments tailored to your needs.

Disfigurement Awards and Compensation

Although you might not need to prove loss of wages or disability to qualify, workers in Colorado who sustain permanent and visible scarring or disfigurement from a workplace injury can receive disfigurement benefits. A medical professional evaluates the injury’s severity and location to determine compensation for disfigurement. You must file your claim within statutory time limits to be eligible. Compensation is capped, reflecting the injury’s impact.

Death Benefits: Eligibility and Maximum Weekly Payments

If a worker dies from a work-related incident in Colorado, dependents who qualify based on their dependency status at the time of death are eligible for death benefits.

These benefits amount to two-thirds of the deceased’s average weekly wage, but as of July 1, 2025, are capped at a maximum of $1,396.85 per week.

Surviving spouses receive payments for life or until remarriage, while multiple dependents share the benefits proportionally to their dependency level.

Eligibility Requirements

When a worker dies due to a work-related incident in Colorado, their dependents become eligible for death benefits under workers’ compensation.

To be eligible, you must:

1. Establish dependency: Demonstrate your relationship and financial reliance on the deceased worker, such as being a spouse, child, or other dependent.
2. File a claim: Submit the necessary documentation within the required timeframe to the workers compensation system.
3. Receive compensation: Death benefits amount to two-thirds of the worker’s average weekly wage, capped at $1,396.85 weekly (effective July 1, 2025), plus coverage of up to $14,206.62 for funeral expenses and related medical bills.

These rules guarantee dependents are properly compensated for their loss.

Benefit Amounts

Dependent Distribution

Death benefits in Colorado are distributed among dependents according to their degree of dependency on the deceased worker. You receive financial support amounting to two-thirds of the worker’s average weekly wage, capped at $1,396.85 weekly as of July 1, 2025.

Here’s how death benefits work for you as a dependent:

1. Surviving spouses receive benefits for life or until remarriage.
2. Multiple dependents share benefits based on their dependency levels.
3. Employers cover up to $14,206.62 for funeral expenses and related medical bills.

You must file within the legal timeframe to maintain eligibility.

Vocational Rehabilitation and Return-to-Work Services

Although vocational rehabilitation remains a recognized benefit under Colorado workers’ compensation law, it is now optional and rarely offered by employers or insurance carriers. As an injured worker, you might qualify for vocational rehabilitation if you can’t return to your previous job after reaching maximum medical improvement. These services can include retraining, job placement, and counseling to support your return to work. However, accessing vocational rehabilitation often requires demonstrating clear need and maneuvering a complex process.

Eligibility Criteria and Exemptions From Coverage

1. Casual workers earning less than $2,000 annually, private domestic workers if not full-time, and real estate agents paid by commission.
2. Independent contractors without employees don’t have to be covered.
3. Corporate officers or LLC members may opt out of coverage.

You must make certain employees report injuries within four days, and claims are filed within 10 days to maintain benefits eligibility.

Employers must respond within 20 days.

Claims Process and Important Filing Deadlines

To protect your workers’ compensation benefits in Colorado, you must report your injury to your employer within four days and file a claim with the Division of Workers Compensation within 10 days of notifying your employer.

This claims process, governed by Colorado workers compensation laws, guarantees timely documentation and processing.

After filing, your employer must respond within 20 days. You have up to three years from the injury date to file your claim, but failure to follow up within two years may result in claim closure and loss of benefits.

Prompt action is essential to safeguard your rights.

Employers’ Insurance Requirements and Penalties for Non-Compliance

Colorado law requires every business with one or more employees to carry workers’ compensation insurance, covering both full-time and part-time workers.

As an employer, you’re required to guarantee coverage through insurance companies licensed in Colorado, including Pinnacol Assurance.

Pay attention to these key points:

1. Employers must carry workers compensation insurance without exception, except for specific exemptions like casual workers earning under $2,000 annually.
2. Construction businesses face additional insurance mandates due to higher risks.
3. Penalties for non-compliance include significant fines and legal consequences, emphasizing strict enforcement to protect employees.

Understanding Impairment Ratings and Maximum Compensation Caps

Once you reach Maximum Medical Improvement (MMI), your treating physician will assign an impairment ratings measurement reflecting your permanent loss of function from the injury.

These ratings determine the extent of your permanent disability and eligibility for Permanent Partial Disability (PPD) benefits, which may range up to $150,000 or more based on your whole person rating.

Maximum compensation caps limit combined temporary and PPD payments, adjusted annually to the state’s average weekly wage.

If you qualify for Permanent Total Disability (PTD), you receive two-thirds of your average weekly wage for life, without a specific cap but influenced by your education and work experience.

The overall weekly benefit is capped at 91% of the state average wage.

Legal Support and Resources for Injured Workers in Colorado

Maneuvering the workers’ compensation system can be complex, and securing the benefits you’re entitled to often requires knowledgeable legal support.

If you’re injured on the job in Colorado, legal representation helps you navigate workers’ compensation laws and maximize what compensation insurance provides.

Key ways attorneys assist include:

1. Explaining your rights and guiding you through filing claims correctly.
2. Pursuing fair settlements, especially when benefits are delayed or disputed.
3. Accessing vocational rehabilitation resources if you need retraining or job placement support.

This statewide support covers cities like Centennial, Boulder, and Littleton, ensuring comprehensive legal aid for injured workers.

Frequently Asked Questions

How Much Does Workman’s Comp Pay in Colorado?

Workers’ comp in Colorado pays wage replacement benefits equal to two-thirds of your average weekly wage, capped around $1,397 weekly (2025), plus medical expense coverage. This is determined via compensation calculations after claim filing.

What Are the Three Main Requirements to Obtain Workers’ Compensation?

Getting workers’ compensation means you must meet three simple steps: prove eligibility criteria by showing you’re classified as an employee, notify your employer per their responsibilities, and handle claim filing properly to enable accurate benefit calculations.

What Is the 3 Day Rule for Workers’ Comp in Colorado?

The Colorado three day rule means you don’t receive lost wage benefits for the first three days off work due to injury, but if you stay off work more than two weeks, you get paid retroactively for those days. Reporting injuries quickly and seeking authorized medical treatment protects your employee rights under this rule.

What Is Not Covered by Worker’s Compensation Insurance?

Workers’ compensation doesn’t cover personal injury exclusions like self-inflicted injuries, pre-existing conditions worsened off duty, or incidents during voluntary athletic or social events unrelated to work duties. Off-duty incidents generally aren’t covered either.

Conclusion

Don’t let uncertainty about your rights hold you back—did you know Colorado Workers’ Compensation can cover all your medical expenses, wage losses, permanent impairments, disfigurement, or even death benefits? Understanding these protections guarantees you’re fully supported after a workplace injury. Stay informed, meet filing deadlines, and seek legal assistance if needed so you get the benefits you deserve without delay. Isn’t it worth knowing exactly what help is available when you need it most?