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Workers' compensation benefits explained

September 15, 2021
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In a perfect world, there wouldn't be a need for workers' compensation benefits. But every day, employees sustain work-related injuries and occupational illnesses.

What is workers' compensation? 

Like most states, Colorado requires businesses with one or more employees to be insured with workers' compensation.

This remains true even if you only have one employee, or if your employee is a friend or family member.

In the event of a work-related accident or illness, workers' compensation insurance protects employers and employees. Additionally, policies cover employee medical care, a portion of lost wages—and protect employers from legal action.

Worker compensation benefits

Workers' compensation (also known as workers' comp) covers:

  • Employee medical care
  • Lost wages
  • Work-related injury legal fees
  • Disability benefits
  • Death expenses
  • Return to work training and ongoing care

Here's a closer look at how Colorado workers' compensation protects both employers and their workers.

Workers' comp benefits that protect your business

In the long run, workers' compensation benefits often save money employers a lot of money and stress through:

1. Legal protection

In most cases, Colorado workers' comp laws prevent employees from filing personal injury lawsuits against their employers.

2. Customized coverage

Policy premiums take into account your business and industry, as well as wages and salaries paid to your employees.

The National Council on Compensation Insurance (NCCI) provides a "classification code" that's based on accidents within your specific industry.

NCCI also assigns an "experience modifier" (or e-mod) that compares your company's accident history to others within your industry.

3. Discounts for a good safety record

If your e-mod rate reflects a safety record that's better than the industry average, you can qualify for discounted premiums.

Discounts are also available for participating in safety group programs and using designated medical providers.

4. Cheaper than out-of-pocket payment

A Pinnacol Assurance study revealed that the average workplace accident claim totaled $7,453. But businesses saved 50 percent with workers' compensation benefits vs. out-of-pocket.

5. Return to work resources

Insurers dedicated to being a safety partner, like Pinnacol, help businesses create a return to work program to support the recovery of injured workers and their safe, swift transition back.


Employee worker compensation benefits

Colorado workers' compensation benefits help employees recover from a workplace injury or occupational illness, including:

1. Help with medical, disability and other expenses

Workers’ compensation benefits cover expenses like medical care, injury-related prescription medicine, and physical therapy.

2. Coverage for certain lost wages

Injured employees that are unable to work three or more scheduled work shifts can receive two-thirds of their average weekly wage.

They may also receive benefits when employers can't provide work that meets medical restrictions.

3. Death benefits

Colorado workers' compensation covers funeral expenses of employees killed on the job and death benefits for their dependents.

Colorado workers' compensation businesses and employees can count on

Choosing the best workers' comp partner provides peace of mind when you need it the most. And it can also help your workers recover for a safe return to work.

With over 100 years of workers’ comp experience, Pinnacol provides businesses with reliable coverage and free:

  • Safety services
  • Injured worker support
  • Return to work programs

See why over 56,000 Colorado businesses trust us with protecting their business and workers. Get a quote online or connect with an agent partner to see if Pinnacol is the right fit for your business.

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