A Guide to Colorado Workers’ Comp Benefits for Permanent Injuries
Learn the difference between PTD and PPD in Colorado and what to do if the insurer undervalues your injury
If you suffered a permanent injury or occupational disease on the job in Colorado, you’re likely facing a lot of uncertainty—not just about your health but about how you’ll support yourself and your family moving forward.
Colorado’s workers’ compensation system provides benefits for permanent disabilities, but the rules can be confusing, and the insurance company isn’t always upfront about what you’re entitled to. So, it may be difficult to know how much your injury is worth.
Our goal is to change that. In this article, we’ll help you understand the difference between permanent total disability (PTD) and permanent partial disability (PPD) in workers’ comp, which types of injuries and occupational diseases qualify, and how these benefits are calculated.
If you’re unsure which category your injury falls into or whether you’re receiving fair compensation, schedule a free consultation with Denver work injury lawyers at Babcock Tucker.
What qualifies a person for permanent disability benefits after a work injury in Colorado?
In Colorado, a worker may qualify for permanent disability benefits when a job-related injury, illness, or occupational disease leaves them with lasting limitations that do not fully resolve—even with treatment.
To receive these benefits, the condition must be directly tied to your work and must permanently affect your ability to earn wages at your pre-injury level.
A key part of this process is reaching maximum medical improvement (MMI). MMI does not mean you are fully healed—it simply means your doctor believes your condition has stabilized and is unlikely to improve further with additional medical care.
Once you reach MMI, your authorized treating physician evaluates whether you have a permanent impairment and assigns you an impairment rating.
Workers may qualify for permanent disability benefits even if they can still work. Some injuries leave people able to return to lighter or lower-paying work, while others may prevent a return to the workforce entirely.
The type and amount of permanent disability benefits are determined by your impairment rating and the impact on your long-term earning ability.
How Workers’ Compensation and Disability Benefits Differ
Learn the difference between workers’ comp and private short/long term disability benefits a worker may have through a group policy from employer, union, or an individually purchased policy.
What qualifies as total permanent disability for workers’ comp in Colorado?
Total permanent disability (TPD) in Colorado workers’ comp applies when a work-related injury or disease leaves you unable to earn wages in any job. In other words, it’s reserved for the most serious injuries—those that make it realistically impossible to return to the workforce.
You may be considered totally and permanently disabled if:
- You cannot perform your pre-injury job or any other gainful employment.
- Your functional limitations prevent full-time or part-time work, even with accommodations.
- Your treating physician and supporting medical evidence show that no further treatment will restore meaningful work capacity.
Certain catastrophic injuries almost always qualify, including:
- Amputation or total loss of function in both hands, arms, feet, or legs
- Complete blindness in both eyes
- Severe traumatic brain injuries
- Spinal cord damage causing total paralysis
In other cases, the determination comes down to medical evidence, vocational limitations, and whether you can realistically compete for jobs in the open labor market. If the evidence shows you cannot sustain employment at any meaningful level, you may be eligible for lifetime total disability benefits under Colorado workers’ comp.
How much is the payout for permanent total disability under Colorado workers’ comp?
Permanent total disability (PTD) benefits in Colorado provide ongoing wage replacement when a work-related injury or illness leaves you unable to earn any wages in any job. Unlike permanent partial disability, PTD is a lifetime benefit, although workers may opt to receive a lump-sum settlement.
Here’s how PTD payments work:
- You receive two-thirds of your average weekly wage (AWW) before taxes. Colorado law caps this amount at a maximum weekly rate that changes each year. If your AWW was very high, you may receive the statutory maximum instead of the full two-thirds. As of July 1, 2025, the maximum weekly benefit amount is $1,338.96.
- Payments continue for life. As long as you remain permanently unable to work in any gainful employment, you will continue receiving PTD benefits.
- Medical benefits also continue. PTD beneficiaries will also continue to receive medical benefits for ongoing, reasonable, and necessary medical treatment related to the work injury.
Because PTD provides lifelong income and medical care, insurers often push back hard on these claims. If you believe your injury makes you permanently unable to work, it’s important to get legal guidance from a local Colorado workers’ compensation lawyer before accepting a settlement.
When Will Workers’ Comp Offer a Settlement?
Understand when workers’ comp settlements are typically offered and how they impact your right to future benefits in Colorado.
What are permanent partial disability benefits in Colorado?
Permanent partial disability (PPD) benefits apply when a work-related injury or illness leaves you with a lasting impairment, but you are still able to work in some capacity.
Unlike permanent total disability—which applies when you cannot return to any employment—PPD is for workers who have permanent limitations but can still earn wages, even if not at the same level as before.
You may qualify for PPD if:
- You’ve reached maximum medical improvement (MMI).
- Your authorized treating physician assigns an impairment rating describing the extent of your permanent loss of function.
- Your injury results in ongoing physical or functional limitations, even after treatment ends.
These benefits help compensate you for the permanent impact on your body and your ability to work, even if you’re able to return to a job.
How to calculate PPD benefits in Colorado
Colorado uses two different formulas for calculating PPD benefits based on whether your injury is considered a scheduled impairment or a non-scheduled/whole person impairment. PPD benefits are subject to state maximums that change annually.
Scheduled impairment (PPD) benefits
Scheduled impairments apply to specific body parts—such as an arm, hand, leg, foot, finger, eye, etc.
The formula used to calculate these benefits is: impairment % × number of weeks assigned to that body part × PPD rate on the date of injury (which is based on your average weekly wage).
For example, if your arm is worth 208 weeks and your impairment rating is 10%, the calculation is: 10% × 208 weeks × your PPD rate.
Whole person impairment (PPD) benefits
Whole person impairment applies to injuries involving the spine, head, hips, internal organs, or any condition not listed on the schedule.
The formula used to calculate these benefits is: impairment % × 400 weeks × TTD rate × age factor.
Keep in mind that your TTD rate is generally two-thirds of your average weekly wage before taxes. Award amounts are also based on age, with younger workers receiving higher multipliers.
Because these formulas can drastically change the value of your claim—and because insurers often dispute impairment ratings—it’s smart to have a Denver workers’ comp attorney review your rating and accurately calculate your benefits so you don’t end up with less than your claim is worth.
Need help getting permanent disability benefits after a work injury in Denver?
The process of calculating permanent disability benefits is complex, and insurance companies use that to their advantage. The more confusing the rules are, the easier it is for them to underpay or dispute the extent of your impairment.
We want to help you put a stop to that. Babcock Tucker is a Denver-based workers’ compensation firm that knows how local doctors and insurers handle permanent disability claims. That local experience helps us cut through red tape and get your case settled more efficiently.
If your injury has left you with lasting limitations and you’re unsure whether you’re being paid fairly, reach out to the experienced Denver work injury attorneys at Babcock Tucker for a free consultation.
We’re here to protect your rights and make sure you get the full benefits you’re owed under Colorado law.
