How Long Does Workers’ Comp Take To Settle?

What Is Workers’ Compensation?

Workers’ compensation, also known as “workman’s comp,” is a state-run program that provides monetary support to injury victims who are hurt at work. Workers’ comp coverage requirements vary from state to state. However, the basic process is the same. A business can purchase workers’ compensation insurance to protect itself from civil lawsuits after an employee is injured on the job.

In general, workers’ comp provides compensation to injured employees for:

• Medical expenses
• Lost wages
• Rehabilitation costs
• Death benefits to families of employees killed on the job

Almost all states require businesses with employees who are not owners of the business to purchase workers’ comp coverage to protect themselves and their workers. If they fail to obtain coverage, they may face consequences, such as:

• Out-of-pocket payment for claims
• Government fines
• Possible prison time
• Losing the ability to conduct business

How Does Workers’ Compensation Work?

When an employee is injured during the course of their duties, they may qualify to file a workers’ comp claim. Whether the employee is at fault for the injuries or not, workers’ compensation will pay a portion of any missed wages and cover most medical expenses that resulted from the accident. However, the worker must qualify for the benefits by meeting these eligibility requirements:

1. Must be an employee of the business (not a freelance contractor).
2. The employer must have workers’ comp coverage.
3. It is a work-related injury.
4. The employee meets reporting and filing deadlines.
5. The worker attends all medical appointments and exams and follows treatment plans.

If injured workers meet these qualifications, they can file a workers’ comp claim to receive benefits while they recover. 

After an employee notifies their employer of an injury or occupational illness, the employer should forward the case to their insurer within 10 days. If an employer fails to do this, they may be subject to penalties or other sanctions.

An employer or an insurer acting on behalf of the employer shall file a First Report of Injury (FROI) with the Division of Workers’ Compensation under certain circumstances. Firstly, if a worker sustains an injury or contracts an occupational disease that results in more than three days/shifts of lost time, or suffers a permanent physically-impairing injury, they should report within 10 days of the employer knowing about the incident. 

An FROI shall also be filed if an injury results in a fatality, or three or more employees are injured in the same accident. Besides filing an FROI, an employer or their insurer is required to notify the Division customer service via telephone within 24 hours of receiving notice of such an occurrence.

If, within 10 days after notice or knowledge of any claim for benefits, including medical benefits only, an insurance company denies a claim for any reason, it needs to file an FROI with the division. 

An insurer must admit or contest liability within 20 days after the FROI is filed with the division. If the employer failed to file an FROI, the insurer’s 20-day deadline starts from the date the employer’s First Report of Injury should have been filed.

These strict timelines set by the state ensure investigations can be commenced soon, allowing an employee to start receiving benefits on time. Being informed about Colorado workers’ comp laws​ can help you identify mistakes that may occur in your claim.

What Is The Timeline To Settle A Workers’ Compensation Claim?

Workers’ comp is designed to give injured employees swift financial relief after a work accident. However, some claim settlements take longer than others. Here’s the typical timeline for workers’ comp cases to settle.

1. The Injured Worker Files A Workers’ Comp Claim

In some cases, the employer doesn’t deny that they owe you workers’ comp. They don’t contest what you’re asking them to pay. In those cases, you begin to receive payments very quickly. In only a few weeks, you start getting payments. The start of getting the workers’ comp payments isn’t your final settlement, though. You might receive periodic payments for some time before you get a lump sum settlement.

2. Lump-Sum Settlement

The lump-sum settlement doesn’t happen until you reach the maximum medical benefit from treatment. Of course, how long it takes to reach the maximum medical benefit from treatment varies greatly based on your injuries. Once you reach the maximum medical benefit from treatment, you have to wait a few months before they process the paperwork for your lump-sum payment. The settlement amount you receive depends on the type and severity of your disability.

As of January 1, 2025, the lower cap for medical and disability benefits is $185,000, and the maximum cap is $300,000. The amount to receive depends on the level of impairment, which is determined by a medical professional. These caps will continue to be adjusted on July 1 of each year. 

3. Request A Pre-Hearing And Settlement Discussions

When you disagree with the decision of the insurance company about coverage, benefits, or your lump sum payout, you can request a hearing. Before you have the hearing itself, you have a pre-hearing conference and settlement discussions. You talk about issues in the case and the production of any records that may facilitate settlement. It’s possible that your case will settle at this stage of the proceedings.

If the disagreement you have with your employer or their insurer is based on the reasonableness, necessity, and relation of the medical treatment recommended by an authorized treating physician, you won’t be the one producing records. The House Bill 25-1300, introduced in 2025, shifts the burden of proof in such cases from a claimant to the employer or their insurer.

However, you still need to initially prove that the injury you sustained is work-related and that the medical treatment in question was recommended by an authorized treating physician.

This bill also provides injured workers control over the selection of their primary treating physician. You can choose from any Level I or Level II accredited physician through the Division of Workers’ Compensation. An employer or their insurer may only choose a physician for an injured worker when the employee is unable or unwilling to do so.

It takes a couple of months to request a hearing and wait for your pre-hearing conference date. That means, if you have to take your case through the pre-hearing process, it will add a couple of months to the timeline to resolve the case. If you use the pre-hearing process and then settle your case, it can take as long as six months to settle your Denver workers’ comp case.

A Colorado workers’ compensation lawyer can help you throughout the process, ensuring you have a smooth process.

4. Hearing Before A Judge

If you don’t resolve your case in the pre-hearing process, your case goes to a hearing before a judge. You may request an expedited hearing, which takes place within 45 days of the request. If the hearing isn’t expedited, it could take 80-100 days from when you make the request. After your hearing, you wait for the judge’s decision.

The complete process can add up to four months to the time that it takes to receive your settlement. At this point, it’s probably between eight months to a year from the time that you reached your maximum medical improvement and began to pursue settlement negotiations.

5. Petition For Review

If you’re not happy with the result of the hearing, you can still pursue additional court reviews. You have 20 days after the judge’s decision to file a petition for review. You must order a transcript. The documents that you submit to the court include a legal brief that outlines why you believe the judge made an incorrect decision. Then, the Industrial Claims Appeal Panel hears your appeal and issues a decision within 60 days. This process can take several months.

6. After The Appeal

When you’re unsatisfied with the decision of the appeals panel, you may take your case to the Colorado Court of Appeals. You can even take your case all the way to the Colorado Supreme Court, but the Supreme Court can decide whether or not to hear the case.

Filing the case with the Court of Appeals means filing transcripts, preparing legal briefs, waiting for a hearing date, and arguing your case. Taking your case all the way to the Colorado Court of Appeals can mean that the case takes two years or more to resolve.

What If You’re Permanently Disabled From A Work Injury?

If you’ve suffered a work-related injury, you may discover that the severity of this injury has caused permanent damage. When this happens, you may qualify for permanent disability benefits. However, it may take some time before you learn that your injury has left you with an ongoing medical issue.

In order to get permanent disability benefits, you must follow all the steps to file a workers’ comp claim. Then, you must also go through the medical and legal process that proves your condition is unlikely to change after reaching a recovery plateau. Essentially, you must demonstrate that this permanent medical condition limits your ability to work or prevents you from working at all.

How Long Does The Average Workers’ Comp Case Take To Settle?

Reading about the average settlement times for workers’ comp cases may leave you feeling discouraged. Two years can seem like a lifetime to wait when you need benefits now. Rest assured that the vast majority of cases don’t take two years to settle. Most cases fall somewhere in between the fast resolution of 60 days and a drawn-out appeals process of a couple of years.

Carefully documenting your injuries and taking the right steps can go a long way to getting you the resolution that you deserve quickly. It’s also important to act quickly if your workers’ comp has been denied.

Contact Our Colorado Workers’ Comp Attorneys

Each workers’ comp case is unique. It’s impossible to tell the amount of time it’s going to take to resolve your case based on other cases or based on what’s typical. Do you want to know how long it’s going to take to settle your workers’ comp case? Contact our Colorado personal injury lawyers for a free consultation. 

We offer legal advice and full-service representation to ensure you get the maximum benefits for your claim. We are conveniently located at five Colorado locations near you in Denver, Fort Collins, Colorado Springs, Aurora, and Englewood. Our attorneys are ready to serve you and fight for the compensation you deserve.

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