The Short Answer
In Colorado, what most injured workers call “accident insurance” is usually workers’ compensation, and yes, it covers lost wages after a workplace injury — but only partially. Workers’ comp typically pays about two-thirds of your average weekly wage, subject to a state cap, not your full paycheck. If a third party caused your injury, you may be able to recover your full lost wages through a separate personal injury claim.
—
Workers’ compensation in Colorado pays lost wages after an accident at work — but it replaces roughly two-thirds of your average weekly wage, not the whole thing. That gap surprises a lot of people. You’re hurt, you can’t work, and the check that shows up is smaller than the one you’re used to. Understanding why, and what you can do about it, starts with knowing what “accident insurance” actually means in your situation.
“Accident Insurance” Usually Means Workers’ Comp — But Not Always
When an injured worker in Colorado Springs says “accident insurance,” they almost always mean workers’ compensation. That’s the no-fault system that pays for medical care and partial wage replacement when you’re hurt on the job. You don’t have to prove your employer did anything wrong. You just have to show the injury happened at work.
But “accident insurance” can also mean a private supplemental policy — something you bought on your own or got through your employer’s benefits menu, like a voluntary AFLAC-style plan. Those pay a flat benefit for specific injuries, separate from workers’ comp, and they don’t replace your wages the way comp does.
The distinction matters. Because what you’re entitled to, how much, and what to do when it falls short all depend on which system you’re dealing with. For most folks injured at a job site in Fountain, a warehouse in Cimarron Hills, or a construction project off Powers Boulevard, the answer is workers’ comp.
How Colorado Workers’ Comp Pays Lost Wages
Colorado workers’ compensation handles lost income through two main types of benefits, and which one applies depends on whether you can work at all.
Temporary Total Disability (TTD)
If your doctor takes you completely off work while you recover, you’re eligible for Temporary Total Disability. TTD pays two-thirds of your average weekly wage — calculated from your earnings before the injury — up to a state maximum that adjusts each year.
There’s a catch on the front end. Under Colorado law, you don’t get paid for the first three days of lost time unless your disability lasts more than two weeks. If you’re off work longer than that, those first days get paid back. So short absences carry a waiting period; longer ones don’t.
Temporary Partial Disability (TPD)
If you can return to work but only in a reduced capacity — fewer hours, lighter duty, lower pay — you may qualify for Temporary Partial Disability. TPD covers two-thirds of the difference between what you used to earn and what you’re earning now. It’s designed to bridge the gap while you ease back in.
Both benefits are partial by design. That two-thirds figure, combined with the annual cap, is exactly why so many injured workers in Colorado Springs find their bills outpacing their benefits. The system was built to keep you afloat, not to make you whole.
Are Lost Wages “Actual Damages”?
In a workers’ comp claim, your wage replacement isn’t framed as “damages” — it’s a statutory benefit, calculated by formula, with no compensation for pain and suffering. That’s the trade-off of the no-fault system: you get benefits without proving fault, but you can’t sue your employer for the full scope of your losses.
In a personal injury claim, it’s different. There, lost wages absolutely count as actual damages — meaning real, documented economic losses you can recover in full. Not two-thirds. The whole amount you lost, plus future earning capacity if your injury affects your ability to work going forward. This is one of the biggest differences between the two systems, and it’s where having the right attorney matters.
That’s why Bradford Pelton PC handles both workers’ compensation and personal injury under one roof. When a work injury also involves a negligent third party, the difference between partial wage replacement and full lost-wage recovery can be substantial — and you don’t want those two claims handled by two different firms that don’t talk to each other.
When Your Wage Benefits Aren’t Enough — Or Get Delayed
Here’s a scenario we see often. You’re driving for work on I-25 near Monument, or making a delivery on Academy Boulevard, and another driver runs a light and hits you. You’re injured on the job, so workers’ comp applies. But the crash was someone else’s fault.
That’s a third-party claim. You can collect workers’ comp benefits and pursue a separate personal injury claim against the at-fault driver. The personal injury claim can recover your full lost wages, the portion workers’ comp didn’t cover, plus pain and suffering and other damages comp simply doesn’t pay. These situations come up frequently with auto accidents that happen during work travel, and they require coordinating both claims carefully so you’re not leaving money on the table.
Delays are another problem. Wage checks can come late. Benefits get denied. An insurer disputes your average weekly wage and calculates it low. When that happens, you need someone who can push back fast — without your case getting passed between paralegals. At Bradford Pelton PC, Alex Kerr handles your case personally from the first phone call through resolution. No handoffs when your benefits stall and rent is due.
If you think your wage calculation is wrong, or your benefits stopped without a clear reason, it’s worth having someone review the numbers. Colorado’s workers’ compensation rules are specific, and small errors in your average weekly wage can cost you real money over the life of a claim.
What to Do Next
Report your injury to your employer in writing — Colorado law requires notice within 4 working days to avoid a potential reduction in benefits, and waiting can reduce what you’re owed. Get medical treatment and follow the restrictions your doctor sets. Keep records of every missed shift and every reduced paycheck. And if another party caused your injury, don’t assume workers’ comp is the end of the story.
This article is for informational purposes only and does not constitute legal advice. Every case is different. Contact Bradford Pelton PC for a free consultation to discuss your specific situation.
—
Frequently Asked Questions
Does accident insurance cover lost wages?
It depends on the policy. Colorado workers’ compensation — what most injured workers mean by “accident insurance” — covers lost wages partially, typically two-thirds of your average weekly wage up to a state cap. A private supplemental accident policy pays a fixed benefit for specific injuries and usually does not replace wages the same way.
How much compensation do you get for loss of earnings?
Under Colorado workers’ comp, you generally receive two-thirds of your average weekly wage while you’re disabled, subject to an annual maximum that the state adjusts. In a third-party personal injury claim, you can pursue your full lost wages plus future earning capacity. Amounts vary by case, your earnings, and the circumstances of the injury.
Are lost wages actual damages?
In a personal injury claim, yes — lost wages are considered actual (economic) damages and are recoverable in full, along with future lost earning capacity. In a workers’ compensation claim, wage replacement is a statutory benefit calculated by formula rather than “damages,” which is why it covers only a portion of your income.
How much will I get from a $50,000 settlement?
A settlement figure is not what lands in your pocket — medical liens, workers’ comp reimbursement (subrogation), and attorney fees may come out first. In work-injury cases with a third-party claim, how the comp insurer’s repayment is handled can significantly affect your net. An attorney can walk you through the breakdown for your specific situation.
What if I was injured at work in Colorado Springs and the benefits are delayed?
If your wage benefits are late, denied, or calculated too low, you have the right to dispute the determination. Document everything and contact an attorney quickly, since deadlines apply. Bradford Pelton PC offers a free consultation, and Alex Kerr will personally review whether you’re receiving every wage benefit you’re entitled to.