Low-Limit Auto Policies & Colorado Workers’ Comp: When to Lawyer Up

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The pain doesn’t always roar; it creeps. A stiff neck after a delivery run. A bruised shoulder from a sudden jolt on a work errand. A deep ache that refuses to fade after a roadside collision you didn’t cause. These aren’t just inconvenient injuries, they’re moments that unravel routines, strain families, and challenge livelihoods. You’re often left searching for answers in a system that feels anything but clear. When a low-limit auto policy and the workers’ compensation system collide, you may quickly realize it’s time to lawyer up. Too often, injured employees hear, “Just follow the process,” while vital benefits are delayed, reduced, or denied. But Colorado law protects your rights. You have the right to medical care, the right to wage replacement, and the right to a path forward, one that doesn’t leave you financially or emotionally drained.

So let’s get honest: Are you trusting the system to take care of you? Or are you ready to understand how to take care of yourself before it’s too late?

Colorado Employers Must Carry Workers’ Compensation Insurance

Under Colorado state law, most employers with one or more employees must carry workers’ compensation insurance. This includes full-time, part-time, and seasonal workers. There are a few exceptions, such as some independent contractors and corporate officers, but even they may qualify under certain conditions.

If your workplace injury occurred while performing job duties, whether at a job site or during a work-related drive, you may be eligible for workers’ compensation benefits. Colorado law doesn’t require you to prove fault to receive benefits. As long as the injury was work-related, your employer’s insurance carrier must cover the damages suffered due to the accident. 

When Auto Insurance Fails to Cover Medical Costs or Property Damage

If a car accident caused your injury while you were working, workers’ compensation and the at-fault driver’s insurance company may both come into play. But here’s the problem: many Colorado drivers carry low-limit auto insurance. According to Colorado law, the minimum coverage is $25,000 per person for bodily injury and $50,000 per accident (C.R.S. § 10-4-620). That won’t go far if you suffer serious injuries, need emergency care, or face extensive medical costs.

In these cases, your employer’s workers’ compensation insurance becomes your main support system. It should cover your medical treatment, wage replacement, and any ongoing care. But delays, denials, or low settlement offers can leave you struggling to recover.

Understanding Your Workers’ Compensation Benefits in Colorado

Your workers’ compensation benefits depend on the type and severity of your injury. After a workplace incident, the insurance company must provide a designated provider list of approved doctors you must use for medical treatment, unless it’s an emergency.

Here’s a breakdown of what benefits you may receive:

1. Medical benefits

Full coverage for reasonable medical care.

2. Temporary total disability (TTD)

Payments if you can’t work at all while recovering.

3. Temporary partial disability (TPD)

Support if you return to work in a limited capacity.

4. Permanent partial disability (PPD) or permanent total disability (PTD):

Compensation is based on how your injury affects your long-term ability to work.

5. Lost income

If your injury causes disability lasting three days or less, you receive no lost wages, only medical benefits. If disability lasts longer than two weeks, you get lost wages starting from the first day you stopped working. Lost wages usually equal about 66% of your average weekly wage (CRS § 8-42-103). 

Maximum Medical Improvement (MMI) plays a crucial role in this process. MMI occurs when your condition becomes stable and is unlikely to improve further. Once you reach this point, your benefits shift from temporary to permanent, and the focus turns to evaluating your impairment rating and what kind of permanent disability benefits you’re entitled to. This phase significantly affects your settlement amount, so understanding when and how MMI is determined is essential to protecting the full value of your workers’ compensation case.

Each benefit has rules, timelines, and documentation requirements under Colorado workers’ compensation laws. The insurance carrier may try to limit payments or argue that your injury doesn’t qualify. That’s when things get complicated.

What Happens When the Insurance Company Pushes Back?

Not every insurance carrier handles claims with the transparency and timeliness that injured workers expect under Colorado law. Some insurance companies may dispute claims, question medical evidence, or offer settlement terms that don’t reflect the full scope of your injuries. These bad faith tactics can severely impact your recovery, both physically and financially.

If your workers’ compensation claim is mishandled, you may have grounds for a bad faith lawsuit. Colorado courts hold insurers accountable for failing to act fairly, especially when their conduct delays or denies the full extent of your legal benefits.

For instance:

  • You’re told you must return to work, but your doctor hasn’t cleared you.
  • Your medical bills go unpaid, and you’re being sent to collections.
  • Your permanently disabled status is challenged without medical evidence.
  • Your claim is denied due to a technicality, even though your employer should clearly carry workers’ compensation insurance.

These complications often require a proactive approach to ensure your rights remain protected throughout the claims process.

When a Personal Injury Lawsuit and Workers’ Comp Overlap

You cannot sue your employer if you’re covered by workers’ compensation. But you can file a personal injury lawsuit against a third party, like the negligent driver who caused your workplace accident.

Why consider this option? Because while workers’ compensation only covers part of your medical expenses and lost income, a personal injury claim may offer fair compensation for:

  • Pain and suffering
  • Property damage (e.g., damage to your work vehicle)
  • Full lost wages, including bonuses and future earnings
  • Additional medical costs beyond what workers’ compensation will pay

You may pursue both claims at the same time, but under Colorado’s subrogation laws, your employer’s insurance carrier could seek reimbursement from any third-party compensation you receive. These offsets depend on multiple legal factors and require careful coordination.

Example Scenario:

Consider a scenario where a delivery driver in Denver is rear-ended by a driver carrying minimum coverage. The worker suffers a back injury, requires surgery, and misses six months of work. The driver’s auto policy covers only $25,000, barely enough to handle hospital bills.

The delivery company’s workers’ compensation insurance must now cover the remaining medical treatment, lost wages, and disability payments. But if the insurance carrier disputes the claim, delays medical benefits, or offers a low settlement amount, the injured party may never receive the full extent of care and income replacement needed.

What Colorado Law Says About Workers’ Comp Coverage

Under Colorado law, most employers must carry workers’ compensation. Failing to carry workers’ compensation coverage may expose employers to state-imposed penalties and, in certain cases, allow injured workers to seek remedies outside the workers’ compensation system. Even independent contractors may be entitled to workers’ compensation benefits if misclassified.

Common workplace incidents involving vehicles or job-related travel are often considered work-related injuries. These frequently occur in dangerous jobs, including:

  • Construction
  • Delivery services
  • Public safety
  • Transportation

Know When to Lawyer Up: Several Factors Signal It’s Time

You don’t always need legal help, but certain signs indicate it’s time to consult an experienced workers’ compensation attorney:

  • You’re offered a settlement amount that seems too low
  • Your employer says you’re not covered
  • Your claim is denied or delayed
  • Your injury has caused permanent disability
  • You’re being pressured to return to work prematurely
  • The insurance company is conducting its own investigation and questioning your claim

In these moments, a skilled workers’ compensation lawyer can step in to protect your rights and make sure you receive the full benefits you deserve.

Don’t Let Insurance Limits Define Your Recovery

A workplace injury caused by a car accident doesn’t have to mean financial ruin. Even if the at-fault driver carries low-limit auto insurance, Colorado workers’ compensation laws offer protection and pathways to healing. But delays, denials, or low offers from the insurance company shouldn’t be ignored.

Knowing your rights, recognizing the signs of bad faith, and taking timely action can change the course of your workers’ compensation case. If you’re facing mounting medical expenses, lost income, or questions about your benefits, the experienced team at Bourassa Law Group is here to support you. Contact us today for a free consultation. 

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