Average Workers Comp Settlement Colorado: Settlement Amounts By Injury Type
If you’ve been hurt on the job in Colorado, one question is probably at the top of your mind: How much is my workers’ comp claim worth?
Benefits in Colorado include medical benefits, temporary disability benefits, permanent partial disability benefits, and permanent total disability benefits.
The answer depends on your specific injury, your wages, and whether you’ll fully recover. This guide breaks down typical settlement ranges by injury type, explains how Colorado calculates benefits, and shows you what factors can push your settlement higher—or leave money on the table.
Whether you work construction in Fremont County, agriculture in Crowley County, or a warehouse in Pueblo, understanding these numbers puts you in a stronger position when the insurance company comes calling.
Quick Answer: Typical Colorado Workers’ Comp Settlement Ranges
Most Colorado workers comp settlement amounts fall somewhere between $20,000 and $60,000. Many claims fall within $2,000 to $40,000, although severe cases can exceed $600,000. However, minor soft-tissue injuries that heal completely may resolve for under $10,000, while serious disability cases involving surgery or permanent work restrictions can exceed $250,000.
Here’s what you need to understand upfront: there is no single “average workers comp settlement colorado” figure that applies to every case. Settlement amounts depend on your pre-injury wages, the cost of your medical treatment, and whether you end up with permanent impairment—not some predetermined chart. Workers' compensation benefits in Colorado are designed to provide financial assistance to employees injured on the job or who become ill due to work-related conditions.
Recent Colorado data through the July 1, 2025 benefit rate period, combined with actual case experience in Pueblo and Southern Colorado, shows that back, neck, and shoulder injuries often settle at the higher end of typical ranges. These injuries frequently require surgery and cause lasting restrictions that prevent workers from returning to physically demanding jobs.
Settlement amounts in workers' compensation cases are often determined after the injured worker reaches maximum medical improvement (MMI).
Important: Do not accept a first offer from the insurance company or rely on an “online average” before talking to an experienced workers compensation attorney familiar with Colorado law. Insurance adjusters are trained to minimize payouts, and what looks like a reasonable number could be far below what you’re actually entitled to receive.
Ready to find out what your claim is worth? Call Johnston Law Firm, LLC at (719) 309-9484 or message us online for a free workers’ comp case review. Steve Johnston represents injured workers throughout Pueblo and Colorado, and the initial consultation costs you nothing.
How Colorado Workers’ Compensation Settlements Are Calculated
Colorado uses specific formulas based on your employee's average weekly wage, worker's average weekly wage, your impairment rating, and statutory caps—rather than “negotiating from scratch” like you might in a personal injury lawsuit. The employee's average weekly wage and worker's average weekly wage are key factors in calculating benefit amounts and determining the value of your settlement.
A typical workers comp settlement combines several components:
Settlement Component | What It Covers |
|---|---|
Past-due temporary disability benefits | Wage loss during recovery, typically calculated as a percentage of your previous wages |
Permanent partial disability (PPD) | Lasting impairment after maximum medical improvement |
Permanent total disability (PTD) | Complete inability to work |
Medical settlement | Lump sum in exchange for closing future medical care; medical costs are a key component considered in these settlements |
Under Colorado workers compensation law, temporary disability benefits usually pay up to two thirds of the injured worker’s average weekly wage, subject to a maximum rate set each year by the Division of Workers’ Compensation. For injuries occurring between July 1, 2025 and June 30, 2026, the maximum benefit rate for temporary total disability is $1,396.85 per week.
The value of your workers compensation claims is heavily influenced by:
Whether you can return to your prior job
How much pay you’ve lost during recovery
Whether you’ve reached maximum medical improvement (MMI)
Your permanent impairment rating from an authorized treating physician
Workers compensation insurance is mandatory for employers in Colorado with one or more employees.
Insurance companies calculate the lowest possible number using these formulas. An experienced workers compensation lawyer can identify issues and push for a higher, fairer settlement.
The process of filing a workers' compensation claim in Colorado can be complex and may require legal assistance.
Want Johnston Law Firm to run the numbers for your specific wage and injury situation? Call (719) 309-9484 or message us online today.
Key Colorado Workers’ Comp Benefits That Drive Settlement Values
Understanding each benefit category helps explain why two workers with similar injuries may receive very different settlements.
Types of Colorado Workers’ Comp Benefits
Benefit Type | Description |
|---|---|
Medical benefits | Covers all reasonable and necessary medical treatment, including doctor visits, surgery, physical therapy, prescriptions, and medical appointments |
Temporary partial disability benefits (TPD) | Wage replacement for injured workers who return to work on a limited or part-time basis during recovery; benefits are calculated based on the difference between pre-injury and post-injury earnings and end when the worker reaches Maximum Medical Improvement (MMI) or returns to full duty |
Permanent partial disability benefits (PPD) | Permanent disability benefits awarded as compensation for lasting impairment when you can still work in some capacity |
Permanent total disability benefits (PTD) | Permanent disability benefits providing lifetime compensation when you cannot perform any gainful employment due to a work-related injury or occupational illness |
Disfigurement | Additional compensation for visible scarring |
Death benefits | Survivor benefits and burial expenses for fatal workplace injuries |
Permanent partial disability benefits are awarded to employees who have a permanent impairment but can still work in some capacity.
Permanent total disability benefits are awarded to employees who are unable to return to any gainful employment due to a work-related injury.
Occupational illness that results in permanent total disability may qualify for ongoing compensation under Colorado workers' compensation statutes.
Settlements often involve “trading” some or all of your future wage loss or medical benefits for a lump sum payment. The type and duration of benefits available are central to any negotiation.
One important note: Colorado workers compensation does not pay for pain and suffering like a personal injury lawsuit. This often surprises injured workers in Pueblo and nearby counties who expect compensation beyond their medical expenses and lost wages.
Because Johnston Law Firm also handles personal injury and automobile accidents cases, Steve Johnston can evaluate whether a separate personal injury claim exists in addition to workers comp. For example, if a third party—not your employer—caused your work accident, you may have additional injury claims worth pursuing.
Contact the firm online to discuss which benefit categories may apply to your situation before accepting any settlement papers from the insurer.
Average Workers’ Comp Settlement in Colorado by Injury Type
The following ranges are illustrative, based on Colorado benefit structures and typical patterns. Each case must still be evaluated individually based on your wages, worker's impairment rating, and ability to return to work. Settlements can be structured as a lump sum or as structured payments over time, and are generally approved by a judge.
Stronger settlements are usually tied to injuries that:
Cause permanent restrictions
Require surgery
Prevent return to heavy work
This is especially true in industries common around Pueblo, Otero, Fremont, Custer, Huerfano, Las Animas, and Crowley Counties—where construction, agriculture, mining, and warehouse work often involve physically demanding tasks.
In all examples below, settlement value assumes the injured employee has reached MMI and has an impairment rating from an authorized treating physician.
Important disclaimer: The Colorado Division of Workers’ Compensation does not publish a statewide “average” by injury type. Settlement values also change with annual maximums—an injury from 2023 will have different caps than one from 2026.
For a free, individualized estimate based on your specific diagnosis and wage information, call Johnston Law Firm at (719) 309-9484 or message us online.
Back and Neck Injuries
Lumbar and cervical injuries—herniated discs, spinal stenosis, radiculopathy—are some of the most common and expensive workers comp claims in Colorado. These injuries are particularly prevalent among construction, warehouse, and refinery workers in Southern Colorado.
Example Settlement Ranges for Back and Neck Injuries:
Injury Severity | Typical Settlement Range |
|---|---|
Minor back strain with full recovery | $5,000 – $15,000 |
Herniated disc without surgery | $25,000 – $60,000 |
Disc injury with surgery | $50,000 – $150,000 |
Fusion surgery or permanent heavy-lifting restrictions | $100,000 – $250,000+ |
Settlements for back and neck claims are very sensitive to:
Permanent restrictions assigned by your doctor
Your age and remaining work years
Whether you can return to your old job
Two Pueblo workers with similar MRI findings can receive very different amounts based on these factors.
Understanding Whole Person Impairment: Back and neck injuries are calculated as “whole person impairment” rather than scheduled losses. Higher percentage ratings significantly raise the settlement value—a worker with a 15% whole person impairment rating will receive substantially more than one with 8%.
If you’ve been diagnosed with disc problems or received a surgery recommendation, contact Johnston Law Firm by calling (719) 309-9484 or message us online before negotiating directly with the adjuster.
Shoulder, Arm, and Hand Injuries
Common work-related upper extremity injuries in Colorado include:
Rotator cuff tears
Labrum tears
Biceps tendon injuries
Carpal tunnel syndrome
Fractures to the wrist, hand, or arm
Many of these are “scheduled injuries” under Colorado law. The statute assigns a set number of weeks for each body part, and settlement value is calculated using the worker’s impairment rating times that schedule.
Example Settlement Ranges for Upper Extremity Injuries:
Injury Type | Typical Settlement Range |
|---|---|
Minor shoulder strain resolving with therapy | $5,000 – $15,000 |
Surgically repaired rotator cuff with moderate permanent impairment | $25,000 – $75,000 |
Severe, dominant-arm injuries in manual laborers | $80,000 – $150,000+ |
Carpal tunnel (national average approximately $35,000) | $15,000 – $45,000 |
Injury to your dominant arm or hand typically leads to higher settlements due to greater impact on long-term earning capacity. A right-handed carpenter who loses significant grip strength will face more limitations than someone in a desk job.
A Pueblo workers compensation lawyer can often challenge low impairment ratings or push for second opinions if the insurer’s doctor underestimates your permanent loss of function.
Knee, Leg, Ankle, and Foot Injuries
Typical lower-extremity workplace injuries include:
Torn meniscus
ACL tears
Fractures from falls
Ankle sprains
Crush injuries to the foot
These injuries are usually treated as scheduled losses. Settlements depend on the impairment percentage for the leg, knee, or foot combined with the injured worker’s average weekly wage.
Example Settlement Ranges for Lower Extremity Injuries:
Injury Type | Typical Settlement Range |
|---|---|
Simple sprain that heals fully | Under $10,000 |
Knee injury requiring arthroscopic surgery | $20,000 – $60,000 |
Severe multiple-fracture leg injury affecting walking/standing | $100,000+ |
Leg amputation (288 weeks scheduled) at maximum rate | ~$126,000+ |
Workers in physically demanding jobs—construction trades in Fremont County, agricultural work in Otero County—may see higher settlements because permanent knee or ankle restrictions can effectively end their prior careers.
Remember that time limits apply to Colorado workers comp cases. Johnston Law Firm can help document how these injuries affect your ability to stand, climb, and walk, which directly influences the value of your claim.
Head, Brain, and Traumatic Brain Injuries (TBI)
Concussions and more serious traumatic brain injuries from falls, vehicle accidents, or falling objects are treated as whole person impairments. These cases can result in significant settlements due to cognitive and behavioral changes that affect every aspect of life.
Example Settlement Ranges for Head and Brain Injuries:
Injury Severity | Typical Settlement Range |
|---|---|
Mild concussion with full recovery | $15,000 – $30,000 |
Documented TBI with lasting memory/concentration problems | $75,000 – $200,000+ |
Severe TBI (20%+ impairment rating, near cap) | Up to $312,967 |
TBI cases frequently involve disputes over:
Neuropsychological testing results
Future medical needs and further treatment
Whether cognitive symptoms are permanent
Johnston Law Firm’s broader personal injury experience—including auto accidents and catastrophic injury claims—is especially useful when a work-related crash in Pueblo or Colorado Springs leads to both a workers comp case and a third-party liability claim.
Psychological Injuries and PTSD
Colorado does recognize some work-related psychological injuries, such as PTSD after severe accidents or violent events. However, these claims can be more challenging to prove and often face pushback from the insurance company.
Settlements for mental health injuries depend heavily on:
Documented treatment from a medical professional
Formal diagnosis
How much the condition limits your ability to perform any job
Mild, well-controlled conditions might resolve for modest settlements. Severe PTSD that prevents a return to law enforcement, EMS, or similar high-stress occupations can justify significantly higher compensation—potentially reaching the combined benefit caps.
If your work injury has led to anxiety, depression, or PTSD symptoms—even if the insurer has downplayed those issues—contact Johnston Law Firm confidentially at (719) 309-9484 or message us online.
Colorado Disability Benefits: Temporary vs. Permanent and Their Impact on Settlements
Understanding the difference between temporary disability and permanent disability is key to estimating a possible settlement amount.
Disability Type | When It Applies | How Long It Lasts |
|---|---|---|
Temporary (TTD/TPD) | While the worker is healing | Until MMI or return to work |
Permanent (PPD/PTD) | After MMI is declared | Based on impairment rating/lifetime |
The Colorado maximum TTD/TPD benefit is tied to a percentage of the statewide average weekly wage and is updated annually. For the July 1, 2025 – June 30, 2026 period, the maximum is $1,396.85 per week.
The more weeks of TTD already paid and the higher the permanent impairment rating, the more money is typically in play when negotiating a final settlement.
Note on overlapping benefits: In very serious cases, Social Security Disability—another area Steve Johnston practices—can interact with long-term workers comp benefits. Johnston Law Firm can help coordinate both.
Temporary Total Disability (TTD) and Temporary Partial Disability (TPD)
Temporary Total Disability (TTD): Benefits paid at 2/3 of your average weekly wage when you cannot perform any work at all due to the work injury. You continue to receive benefits until you reach MMI or return to work.
Temporary Partial Disability Benefits (TPD): These benefits are paid at 2/3 of the difference between your pre-injury wages and your reduced post-injury earnings when you return to work on a limited or part-time basis during your recovery. Temporary partial disability benefits end when you return to regular work, reach MMI, or refuse suitable modified work.
In Colorado, the maximum temporary disability benefit rate is $1,293.25 per week.
Key points about temporary disability benefits:
Colorado generally does not pay temporary disability for the first three days off work unless the disability lasts more than two weeks
Benefits stop when you return to regular work, reach MMI, or refuse suitable modified work
Disputes about whether modified work is “suitable” can significantly affect your case value
If the insurance company is pushing you to accept light duty work that you physically cannot perform, that dispute alone may justify calling an experienced attorney in Pueblo for help.
Permanent Partial Disability (PPD) and Scheduled vs. Whole Person Impairment
Once your treating doctor declares MMI, they assign an impairment rating that drives permanent partial disability benefits—often the backbone of a settlement.
Scheduled Injuries (arms, legs, hands, feet, eyes, ears):
Colorado law assigns specific weeks of compensation per body part
Weeks are adjusted by the percentage of impairment
Example: Shoulder scheduled at 156 weeks; 15% impairment = calculated PPD benefit
Whole Person Impairments (spine, head, internal organs):
Benefits calculated using impairment rating, age factor, and up to 400 weeks at the TTD rate
Subject to statewide caps on combined benefits
Critical point: Even a “small” change in impairment rating—for example, from 7% to 12%—can add tens of thousands of dollars to a Colorado settlement. Challenging low ratings from insurer-selected doctors can be critical to maximizing your recovery.
Permanent Total Disability (PTD) and Lifetime Benefits
Permanent total disability applies when a work related injury leaves you unable to perform any gainful employment in Colorado—not just your old job.
Key facts about permanent total disability benefits:
Paid at the TTD rate
Can last for life
Potential value often in the hundreds of thousands of dollars or more
Terminates if earnings exceed $9,039.14 annually
Because of the high financial stakes, insurance companies frequently fight PTD cases aggressively. They’ll argue that some type of sedentary work is still possible, even when medical evidence suggests otherwise.
Johnston Law Firm can coordinate workers comp, Social Security Disability, and any applicable personal injury claims for severely disabled workers in Pueblo and across Colorado.
Colorado Caps, Maximum Weekly Benefits, and How They Limit Settlements
Colorado law limits the total amount of certain workers comp benefits, which can “cap” how much a settlement can be worth—no matter how serious the injury.
Combined Benefit Caps for Injuries on or After July 1, 2025:
Impairment Rating | Maximum Combined TTD/PPD |
|---|---|
19% or less | $192,996.79 |
20% or more | $312,967.77 |
These caps are adjusted periodically, and your injury date determines which set of limits applies. Two similar injuries from 2023 and 2026 may have different maximum possible recoveries.
What the caps don’t limit:
Necessary medical care and medical treatment
Vocational rehabilitation services
What the caps do limit:
Cash disability benefits that can be turned into a lump sum settlement
To understand how these caps interact with your impairment rating, age, and wage level, consult with Johnston Law Firm.
Comp Settlement Options in Colorado
When you’re facing a work related injury in Colorado, understanding your comp settlement options is essential to securing the workers compensation benefits you deserve. The way you choose to resolve your workers compensation claims can have a lasting impact on your financial future, your access to medical care, and your overall recovery.
In Colorado, injured workers typically have several options when it comes to settling their workers compensation cases:
Lump Sum Settlement: This option allows you to receive a one-time payment that covers your future disability benefits and, in some cases, future medical expenses. While a lump sum can provide immediate financial relief, it often means giving up the right to reopen your claim for additional medical treatment or disability payments down the road. It’s crucial to ensure the amount truly reflects the full value of your injury and future needs.
Structured Payments: Instead of a single payout, some workers compensation settlements are paid out over time in regular installments. This can help with budgeting and provide ongoing financial support, but it’s important to understand the terms and whether you’re still eligible for future medical benefits.
Keeping Medical Open: In some cases, you may settle the wage loss portion of your claim but keep your right to future medical treatment open. This can be a smart choice if your injury may require ongoing care, surgeries, or physical therapy. An experienced workers compensation attorney can help you weigh the pros and cons based on your specific medical situation.
Full and Final Settlement: This type of comp settlement closes out all aspects of your claim—including medical and disability benefits—in exchange for a larger lump sum. While this can be appealing, it’s vital to fully understand what rights you’re giving up and whether the settlement truly covers your future needs.
Choosing the right settlement option isn’t always straightforward. Insurance companies often push for quick resolutions that may not reflect the true value of your claim. That’s why consulting with an experienced workers compensation attorney is so important. A knowledgeable lawyer can review your medical records, calculate your maximum benefits, and negotiate with the insurance company to ensure you don’t leave money or essential medical care on the table.
Before making any decisions about your workers compensation settlement, reach out to a trusted workers compensation attorney who can guide you through your options and help you secure the maximum benefits available under Colorado law. Your financial security and access to medical care may depend on it.
What To Do Right After a Workplace Injury in Colorado (To Protect Your Settlement)
Decisions made in the first days after an accident can significantly affect both your eligibility for workers compensation benefits and your eventual settlement value.
In the event of a fatal injury, the employer must report the incident, and dependents of a deceased worker may be eligible for death benefits.
Key First Steps After a Work Injury
Report the injury in writing to your employer – Colorado law requires written notice within 4 days. Late reporting gives the insurer an excuse to reduce or deny benefits.
Seek prompt medical care – Get treatment immediately, even if injuries seem minor at first.
Follow all treatment recommendations – Attend every medical appointment, complete physical therapy, and take prescribed medications.
Document everything – Keep copies of:
Accident reports
Wage records
Medical bills and medical expenses
All correspondence from the insurance carrier
Avoid posting about your injury on social media – Insurance adjusters routinely monitor social media to find evidence that contradicts your claimed limitations.
Be honest and consistent – What you tell doctors, employers, and adjusters must match. Credibility challenges can significantly reduce settlement offers.
Call Johnston Law Firm at (719) 309-9484 or message us online as soon as possible after a workplace accident. Steve Johnston can guide you from the beginning, helping you avoid mistakes that could cost you thousands of dollars later.
Common Insurance Company Tactics That Reduce Colorado Settlements
Insurance companies are not neutral parties. They take deliberate steps to minimize payouts, especially when they see high-wage earners or serious injuries.
Watch Out for These Tactics
Tactic | How It Hurts Your Claim |
|---|---|
Sending you to “company doctors” | These physicians often assign very low impairment ratings |
Arguing injuries are pre-existing | Shifts blame away from the work accident |
Pushing early settlement before MMI | Locks you into a low number before you know the full extent of your injuries |
Pressuring return to unsuitable light duty | Can terminate your temporary disability benefits |
Delaying or denying claims | Hoping you’ll give up or accept less |
Real-world example: A Pueblo warehouse worker with a herniated disc is told by the insurer’s doctor that she’s at MMI with a 5% impairment rating. She’s pressured to accept a $15,000 settlement. Later, an independent physician recommends spinal fusion surgery, which would have qualified her for a much higher impairment rating and a settlement potentially exceeding $100,000.
Accepting a lump sum too early often means giving up future medical rights. If surgery or additional treatment is needed later, you’ll be paying out of pocket.
Johnston Law Firm regularly challenges unreasonable denials and lowball settlement offers, using medical evidence and, when necessary, hearings before the Colorado Office of Administrative Courts.
Why Work with Johnston Law Firm, LLC on Your Colorado Workers’ Comp Settlement?
Steve Johnston has focused much of his practice on helping injured workers and accident victims throughout Colorado, with his office based in Pueblo.
What Sets Johnston Law Firm Apart
Broad legal perspective: Steve Johnston’s six key practice areas—workers compensation, personal injury, automobile accidents, estate planning, criminal law, and social security law—provide valuable insight when a work injury overlaps with other legal issues. If you’re hurt in a work-related car crash, for example, you may have both a workers comp claim and a personal injury claim against a third party.
Local knowledge, statewide reach: Johnston Law Firm represents clients not only in Pueblo but also in nearby counties including Otero, Fremont, Custer, Huerfano, Las Animas, and Crowley—as well as throughout Colorado.
How the firm helps injured workers:
Free initial consultations to evaluate your claim
Handling all negotiations with the insurance company
Preparing cases for hearing when necessary to secure fair colorado workers comp benefits
Coordinating with Social Security Disability when injuries are severe
Evaluating potential third-party personal injury claims
Client testimonials and case results demonstrate the firm’s commitment to fighting for maximum benefits for injured workers.
Get Your Free Consultation Today
Don’t leave money on the table by accepting the insurance company’s first offer. An experienced attorney can identify issues that add value to your claim and push back against lowball tactics.
Call Johnston Law Firm at (719) 309-9484 now or message us online to discuss the value of your Colorado workers’ comp claim and your next steps.
The initial consultation is free. There’s no obligation—just straightforward answers about your rights and what your claim may be worth based on your specific injury and wage situation.
Whether you’re dealing with a back injury in Pueblo, a shoulder injury in La Junta, or any other work related injury anywhere in Colorado, Steve Johnston is ready to help you get the financial relief and financial support you deserve.
Your workplace injury shouldn’t define your financial future. Take the first step today—call (719) 309-9484 or message us online for your free case review.