When You Can Sue Outside of Workers’ Compensation
Most workplace injuries in Colorado fall under the workers’ compensation system protections, which provide medical benefits and partial wage replacement without requiring proof of fault. However, in some situations, an injured worker can also file a personal injury lawsuit, which allows them to pursue broader compensation.
If you’re unsure whether your case qualifies for legal action beyond the workers’ comp system, Boesen Law is here to help. Our Denver workers’ compensation lawyers can clarify whether your situation involves only a workers’ comp claim or if a third party may also be legally responsible.
Understanding Workers’ Compensation Limits in Colorado and How These Affect Your Case
Colorado’s workers’ compensation system is designed to protect employees without requiring them to sue their employers. It’s a no-fault program that covers medical bills, rehabilitation, and a portion of lost wages for a range of work-related injuries, such as acute trauma, repetitive stress injuries, or occupational illnesses, among many others.
However, the trade-off is that workers’ comp limits your right to sue your employer. According to C.R.S. § 8-41-102, if an employer carries proper insurance and complies with state law, they generally cannot be sued for personal injury.
In plain terms, this means you usually cannot sue your employer for personal injury, even if they were negligent, as long as they carry valid workers’ compensation insurance. However, if your employer intentionally caused harm or if a third party contributed to the accident, you may pursue further legal action.
When Can You File a Lawsuit Outside of Workers’ Compensation?
While workers’ compensation shields employers from most lawsuits, the following legal exceptions allow injured workers to seek additional compensation through civil claims.
Third-Party Negligence
If a third party caused your injury, you may be eligible to sue them directly. This includes:
- Subcontractors: A subcontractor’s unsafe conduct or failure to follow site protocols can result in injuries for workers employed by other companies.
- Delivery drivers: Drivers not employed by your company who cause a crash while you’re working may be held personally and financially liable.
- Property owners: If a dangerous condition on someone else’s property caused your injury, the owner may bear legal responsibility.
- Equipment operators: Improper use of shared machinery by another company’s operator may entitle you to pursue compensation through a third-party claim.
Examples of third-party negligence include being hit by a careless driver while on the job or getting injured due to a dangerous condition not controlled by your employer. In these situations, you may be eligible to file a personal injury claim and seek additional compensation beyond what workers’ comp covers.
Defective Products or Equipment
Injuries caused by faulty machinery, tools, or safety equipment may give rise to a product liability lawsuit. These claims focus on whether the product had a design flaw, manufacturing defect, or lacked proper warnings. Unlike workers’ comp, product liability claims can include compensation for pain and suffering and other personal injury damages.
Employer Intentional Misconduct
While rare, Colorado law does allow lawsuits against employers in cases of intentional harm or egregious misconduct. Legal precedent in Colorado recognizes this exception, though the burden of proof is high.
If your employer acted with willful intent to injure you—or engaged in conduct so reckless it showed disregard for worker safety—they may lose their liability protection.
Uninsured Employers
Colorado law requires most employers to carry workers’ compensation insurance. If your employer failed to comply, they may be sued directly for damages. These cases often involve additional penalties for the employer and may entitle the injured worker to full tort recovery.
Damages Available in a Lawsuit vs Workers’ Compensation
Workers’ compensation only covers medical treatment, rehabilitation, and partial wage replacement. It does not allow recovery for pain and suffering or full income loss. By contrast, a personal injury lawsuit opens the door to a broader range of damages, including:
- Pain and suffering: Compensation for physical pain, emotional distress, and reduced quality of life.
- Full wage loss: Unlike workers’ comp, a lawsuit can recover your total lost earnings, including future earning capacity.
- Punitive damages: In cases of gross negligence or intentional harm, the court may award additional damages to punish wrongdoing.
Your attorney can evaluate the full potential value of their claim by comparing workers’ comp benefits with the broader damages available through a personal injury lawsuit. This includes medical needs, lost income, and the circumstances of your injury to determine whether a separate claim is possible and worthwhile.
What to Do If Your Claim Is Denied or Limited
If your workers’ comp claim gets denied, don’t lose hope. While denials are common, understanding why claims get rejected and knowing how to respond can significantly improve your chances of success. Claims are frequently denied for technical reasons like missing deadlines, incomplete paperwork, or insufficient evidence – issues that can often be resolved with proper guidance.
Here’s a comprehensive guide to your options and the steps you should take:
- Request a hearing or appeal – You have the right to challenge the insurer’s decision before an administrative law judge. The appeal process includes:
- Filing a Notice of Contest within 45 days of the denial
- Gathering supporting documentation and witness statements
- Presenting your case at an administrative hearing
- Submit additional medical evidence – Strong medical documentation is crucial for your case:
- Obtain detailed medical reports from your treating physicians
- Include diagnostic test results and imaging
- Document all treatments and therapy sessions
- Keep a detailed record of symptoms and limitations
- Seek an independent medical exam (IME) – A second opinion can be valuable when:
- There’s disagreement about your diagnosis or treatment
- The insurance company’s doctor minimizes your injury
- You need to establish the full extent of your disability
- Explore third-party liability – Consider additional legal options:
- Investigate whether equipment manufacturers, contractors, or other parties share responsibility
- Document any evidence of third-party negligence
- Consider both workers’ comp and personal injury claims when applicable
How We Help – Contact Boesen Law Workers’ Compensation Lawyer to Explore All Legal Options
At Boesen Law, we look closely at the facts of your case to evaluate whether a personal injury lawsuit, a workers’ comp claim, or both may apply. Our attorneys have over a decade of experience helping injured workers across Colorado recover what they’re owed.
If you’ve been hurt on the job, contact us for a free consultation—there’s no fee unless we win.
