Workers’ Comp or SSDI? Understanding Your Options in Colorado

An unexpected injury can upend your career, your finances, and your family relationships. Fortunately, people in Colorado can get help after they suffer an injury or serious illness. Two of the main options are workers’ compensation and Social Security disability insurance.

Both programs offer much-needed financial assistance, but they work very differently. Here’s a closer look at workers’ comp vs. disability, along with an explanation of other benefits for injured people and information about how to file your claim.

Workers’ Compensation Benefits in Colorado

Like most states, Colorado requires the majority of employers to carry workers’ compensation insurance. If you get hurt at work or suffer a job-related illness, you could collect benefits like these:

• Medical care
• Partial wage replacement
• Short- and long-term disability benefits

Determining whether you can get workers’ comp benefits is fairly straightforward: If your injury or illness directly arose from your employment, you’re likely eligible.

How To Apply

Colorado workers’ comp laws outline a clear process for anyone looking to apply. If you’ve been injured at work, you have 10 working days to notify your employer in writing. Next, you’ll need to fill out Form WC15, which is titled “Worker’s Claim for Compensation.” 

Once you’ve completed the form, make two copies and mail them (or hand-deliver them) to the Colorado Division of Workers’ Compensation.

Typical Timeline of a Workers’ Comp Claim

Your employer’s insurance company has 20 days to approve or deny your claim. If it approves your claim, you should start receiving benefits shortly thereafter. 

If it’s denied, you may file an appeal with the Colorado Division of Workers’ Compensation. You can also hire a workers’ compensation lawyer to help appeal a denied claim.

Social Security Disability Insurance (SSDI)

If your injury isn’t work-related, you won’t qualify for workers’ compensation benefits. However, you might qualify for Social Security disability insurance. This is a federal program for workers who have long-term disabilities. To qualify, you must meet the following criteria:

• Have enough work credits (from working jobs where you contributed to Social Security).
• Meet the Social Security Administration’s strict definition of “disability.”

Because there are substantial workers’ comp vs. SSDI differences, you might wonder whether you can receive both at the same time. You can, but there’s a catch. Thanks to something called the “workers’ compensation offset,” your SSDI benefits will be reduced if they exceed a certain threshold.

The combined total of your SSDI and workers’ comp benefits may not exceed 80% of your average income before your injury. If it does, the Social Security Administration will reduce your SSDI benefits accordingly.

How To Apply

The easiest way to apply is through the Social Security Administration website. You may also apply by phone or in person. Disability law can be very complex, and it’s advisable to have the help of a disability lawyer.

Other Benefits To Consider

Workers’ comp and SSDI aren’t the only disability benefits in Colorado. You might qualify for other types of financial support.

Supplemental Security Income (SSI)

SSI doesn’t require a work history. This program helps low-income people with disabilities receive funds for basic necessities.

Private Disability Insurance

If you have a private disability insurance policy, you may receive benefits after becoming temporarily or permanently disabled due to specific circumstances. 

Benefit Type	Who Qualifies?	What It Covers	Administered By	How to Apply	Typical Timeline	Can You Receive With Others?
Workers’ Compensation	Colorado employees injured on the job	Medical care, partial wage replacement, disability benefits, rehab	Colorado Division of Workers’ Compensation	Notify employer → File Form WC15 → Employer/insurer review	Weeks to months	Sometimes with SSDI (SSDI may be reduced)
SSDI (Social Security Disability Insurance)	Workers with enough work credits and a long-term disability	Monthly income payments	Federal (Social Security Administration)	Apply online or at local SSA office	Several months to one year	Yes, but SSDI may be offset by Workers’ Comp
SSI (Supplemental Security Income)	Disabled individuals with low income and limited resources	Basic income support for living expenses	Federal (SSA)	Apply through SSA	Several months	Possibly, depending on income level
Private Disability Insurance	People covered by an employer or individual disability policy	Short- or long-term income replacement	Private insurer	File directly with insurer	Varies by policy	Depends on insurer and other benefits
Unemployment Benefits	Workers who can work but lost job through no fault of their own	Temporary wage replacement	Colorado Dept. of Labor & Employment	File online with CDLE	Usually within weeks	No — not available if you can’t work due to disability

Disputes and Appeals

Workers’ compensation is a no-fault system, but many denials happen because of missed deadlines or disputes over whether the injury qualifies for benefits.

Additionally, it’s very common for an initial SSDI application to be denied. If that happens, there are four possible levels of appeals:

• Requesting reconsideration.
• Requesting a hearing with a judge.
• Requesting a review of the hearing decision.
• Filing a federal district court action.

You might feel very discouraged after your disability and work injury claims are denied. Fortunately, attorneys who handle these cases know how to build strong appeals and increase your chances of approval.

Confused About Disability vs. Workers’ Comp?

Workers’ comp is often the right choice for work-related injuries. If you have a long-term or permanent disability, consider filing for SSDI. 

Even if you know the differences between these benefit programs, you might still need support with your claim or application. The workers’ compensation attorneys at Bachus & Schanker can help you weigh your options and determine your next steps.