Call Us!Types Of Workers’ Compensation Insurance
Colorado’s workers’ compensation insurance system was established to help injured employees get the care they need and protect employers from personal injury lawsuits.
Understanding the claims process can be difficult, but you’ll be far better equipped to handle your case if you have a general idea of what workers’ compensation is and how it works.
That said, you shouldn’t feel as though you have to navigate the process alone. The Bachus & Schanker team will take the time to make sure you fully grasp your situation and the benefits you could be entitled to.
What Is Workers’ Compensation Insurance In Colorado?
Like most states, Colorado requires most employers to carry workers’ compensation insurance. Employers pay a monthly premium, and if an employee suffers a work-related injury or illness, the insurance policy covers:
- Medical care related to the injury.
- Partial wage replacement.
- Disability benefits.
- Funeral costs (if the employee dies due to a work-related illness or injury).
Employees who are hurt or become ill at work must file a claim with the insurer. If the claim is approved, they’ll typically receive benefits relatively quickly.
What Is Workers’ Compensation Insurance In Colorado?
Like most states, Colorado requires most employers to carry workers’ compensation insurance. Employers pay a monthly premium, and if an employee suffers a work-related injury or illness, the insurance policy covers:
- Medical care related to the injury.
- Partial wage replacement.
- Disability benefits.
- Funeral costs (if the employee dies due to a work-related illness or injury).
Employees who are hurt or become ill at work must file a claim with the insurer. If the claim is approved, they’ll typically receive benefits relatively quickly.
What Are The Different Types Of Workers’ Compensation Insurance?
Many injured people come to us wondering how long workers’ compensation cases take to settle, and how much compensation they may be able to receive. That depends on the circumstances of the injury and the facts of the case, but it also hinges on the entity that provides workers’ compensation insurance to the employer.
Generally, Colorado employers have three options for offering workers’ compensation for independent contractors and traditional employers.
Private Insurance
Some companies elect to purchase a workers’ comp insurance policy through a private company. Because these insurers can pick and choose who they insure, employers often enjoy several advantages, including:
- Customized workers’ compensation coverage.
- Potentially lower premiums and other costs.
- More comprehensive coverage.
- Faster claims processing.
- Better customer service.
Private insurers tend to be more likely to deny coverage to companies in high-risk industries or very new startups.
Self-Insurance
Employers with the financial means may choose to essentially serve as their own workers’ compensation insurance company. However, Colorado’s requirements for workers’ compensation self-insurance are quite stringent, so few companies go this route.
Colorado’s Insurer Of Last Resort
All insurance companies select which policyholders they want to insure based on risk. If a private insurance company deems a particular employer to be too risky, it may decline to provide coverage.
Ordinarily, an employer in this situation could opt to self-insure. However, not all employers have the financial ability to do so. Colorado requires most employers to carry a workers’ compensation insurance policy, so what does a company do in this situation?
In cases like this, Colorado maintains a relationship with Pinnacol Assurance, the state’s insurer of last resort. This means that the company is required to provide workers’ compensation insurance to any employer in Colorado. Most employers in Colorado are insured through Pinnacol.
What Are The Different Types Of Workers’ Compensation Benefits?
If your workers’ compensation claim is approved, you may receive one or more of the following benefits:
Medical Benefits
Medical benefits coverage pays for medical care and injury-related expenses like prescriptions and physical therapy.
Temporary Total Disability (TTD) Benefits
If you’re completely unable to work while healing, you may receive temporary workers’ compensation disability benefits. Like many other states, Colorado’s TTD benefits are two-thirds of your average weekly wage.
Temporary Partial Disability (TPD) Benefits
Some injuries don’t make it impossible for you to work, but they create temporary limitations. If you’re making less money while you heal, TPD benefits can pay two-thirds of the difference between your pre-injury wage and your current wage.
Here’s an example: Imagine you were making $1,200 per week when you broke your leg on the job. Your employer asks you to work in a different department while you recover, and you’re now making $900 per week.
Because the difference between your weekly wages is $300, and TPD benefits pay two-thirds of that difference, you would receive $200 per week in TPD benefits.
Permanent Disability Benefits
Permanent disability benefits are a bit more complex. If you suffer a permanent partial or total disability because of your injury, you’ll receive ongoing payments based on the affected body part and your level of impairment.
Death Benefits
If you die on the job, death benefits may pay for your funeral and burial expenses. They may also provide compensation to support your family as they grieve.
How Is Compensation Calculated For Different Types Of Injuries?
Calculating long-term disability benefits comes down to a few key factors. If you suffer a permanent disability, you’ll receive what’s called a scheduled loss award. Colorado has a “schedule” of statutory dollar values for various body parts.
A doctor will need to assess you to determine your percentage of disability. That percentage will then be multiplied by the scheduled value of the body part in question.
What Happens If Your Employer’s Insurance Doesn’t Fully Cover Your Injury?
If your workers’ compensation benefits don’t fully cover the care you need, filing an appeal is typically the next step. Our team can help you gather evidence to show the insurance company that your benefits aren’t adequate.
If the appeal is unsuccessful, your individual health insurance may cover what workers’ compensation doesn’t. If you don’t have health insurance, you may be able to work out a payment plan with the provider.
How Can An Attorney Help You Get Full Workers’ Comp Benefits In Colorado?
Some people choose to file workers’ compensation claims on their own. However, when you work with the team at Bachus & Schanker, we may be able to increase your chances of receiving the comprehensive benefits you deserve.
Our skilled workers’ compensation lawyers have extensive experience gathering evidence and preparing claims, and we understand how to negotiate with insurers. If the insurer is still unwilling to compensate you fairly, we can assist you in taking legal action.
How Do I Start A Free Consultation With A Workers’ Compensation Lawyer At Bachus & Schanker?
Navigating the workers’ compensation system can be confusing. Many people’s first impulse is to reach out to the insurance company or their employer, but this generally isn’t a good idea.
When you’re navigating the claims process, you need a knowledgeable representative who’s concerned with your best interests alone. That’s where we come in. Bachus & Schanker has recovered more than $1 billion for our injured clients over the years, and we’re confident we can help you, too.
Scheduling a free, no-obligation consultation is easy when you give us a call, or fill out our convenient online contact form.
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Related Workers Compensation Resources
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Attorney Kyle Bachus knows first-hand how difficult it can be to suddenly lose a loved one in an accident. It’s also devastating when you or a family member suffers severe injuries that forever change your lives. Kyle wrote this book as a resource from his personal experience for families who have suffered a traumatic loss.
A Spanish edition of the book is also available, offering the same support and guidance to Spanish-speaking families.
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