How Workers’ Compensation and Disability Benefits Differ

If you’re severely hurt on the job in Denver and unable to perform your job duties due to your injury, you may be entitled to certain benefits. However, the benefits you’re eligible for depend on several factors, including where and how the injury occurred, as well as your insurance coverage.

In Colorado, there are two different types of financial assistance available to injured workers:

• Workers’ compensation
• Private short- or long-term disability benefits through an employer, union, or individual plan

Determining which one you qualify for, if any, may not be as easy as you think, but the goal of this article is to provide you with a basic overview of the pros and cons of each so you can better understand your rights after suffering an injury or illness in Colorado that prevents you from working.

If you have questions or need help filing a work injury claim, reach out to the experienced Denver workers’ compensation attorneys at The Babcock Law Firm for a free consultation.

 

What is workers’ compensation insurance?

In Colorado, workers’ compensation insurance is a state-mandated program that provides benefits to most employees who suffer job-related injuries or illnesses. The cost of this insurance is covered by employers.

Workers’ comp is a no-fault insurance that covers medical expenses, lost wages, vocational rehabilitation, and disability benefits, regardless of who was at fault for the incident.

What is private disability insurance?

Private disability insurance is an optional insurance policy that replaces a portion of your income if you become unable to work due to a disability.

These wage replacement benefits can supplement or exceed what is provided by government programs or employer-sponsored plans, helping to protect your financial well-being during an unexpected illness or injury.

Unlike workers’ compensation, private disability insurance covers disabilities from any cause (like personal accidents or medical conditions), not just work-related ones.

Private disability insurance is typically purchased by workers who want additional financial protection beyond what is provided by workers’ comp or government programs like Social Security Disability Insurance (SSDI), although some employers may voluntarily provide this type of insurance as part of an employee benefits package.

Can I collect both workers’ comp and Colorado disability benefits after a work injury?

For a work-related injury, disability insurance and workers’ compensation can apply, but the benefits from one may be subtracted from the other. Here are some examples:

• For group policies purchased through the employer, the injured worker doesn’t get both disability and workers’ comp benefits for work-related injuries. Instead, there is an offset where one reduces the other. Which one gets reduced (workers’ comp or disability benefits) depends on the terms of the disability policy.
• For individual and union policies, an injured worker can often “double dip,” so to speak, and get both, but not always. Again, it depends on the terms of the private policy.

It’s worth noting that the “disability” benefits we are talking about here are through private insurance and not through the Social Security Administration. Though they can also apply to workers’ comp cases, Social Security disability benefits are completely different.

What’s the difference between workers’ comp and disability benefits?

To help you understand some of the differences between workers’ compensation and disability benefits, we’ve created a chart outlining the key aspects of each, which we’ll explain in more detail below.

Advantages of workers’ comp over private disability insurance

One advantage of workers’ compensation insurance is that it provides benefits for medical expenses (doctor visits, surgeries, medications, etc.), vocational rehabilitation, wage loss (called temporary disability benefits), and permanent disability.

Private disability policies, on the other hand, only provide wage replacement, meaning an injured person will have to pay for their own medical treatment or get it through their health insurance, Medicaid, or Medicare.

Additionally, issues in workers’ compensation cases, including denied claims, are resolved through administrative hearings under an administrative system that is designed to be quicker, more efficient, and less costly than the traditional judicial process.

Disagreements with a disability carrier go through the traditional judicial process (and usually through the federal courts), which can take years to resolve.

Advantages of private disability insurance over workers’ comp

One disadvantage under workers’ compensation is that injured workers who retain some ability to work after being treated for an injury are only entitled to permanent partial disability (PPD) benefits, even if they can’t go back to their pre-injury employment.

The impairment ratings used in workers’ comp, which are assigned by the worker’s treating physician, do not take into account whether a worker can go back to their pre-injury job or whether they will be forced to take a lower-paying job.

More seriously injured workers can seek permanent total disability (PTD) benefits through a workers’ compensation claim, but they have to be completely unable to work in any employment to qualify.

Unlike the disability determinations in workers’ comp cases, private disability policies do look at the person’s profession when determining benefit amounts. What is considered “disabled” is different from one policy to the next, but disability policies usually pay if you lose your profession due to a medical condition.

How can an attorney help maximize my benefits through workers’ comp or private disability insurance?

An experienced work injury attorney can be your advocate in navigating the complexities of both workers’ compensation and private disability insurance claims. They offer expertise in understanding policy terms, gathering evidence, and negotiating with insurers.

If needed, they can also represent you in appeals or litigation to ensure your rights are protected and help you receive maximum compensation.

Whether it’s a work-related injury or a disabling condition, having legal counsel can significantly improve your chances of a successful outcome.

Need help with a Colorado workers’ comp or disability insurance claim?

Understanding the compensation process as an injured worker can be stressful and time-consuming, which is the last thing you need following a devastating injury.

If you need help navigating the claims process for workers’ comp or private disability insurance, contact the skilled Denver work injury attorneys at The Babcock Law Firm to discuss your case. We’ll guide you every step of the way and make certain you receive the compensation that you deserve.

Get started today by scheduling a free consultation.