Colorado has significantly increased the amount an injured person may recover for pain and suffering in many personal injury cases.
Under HB 24-1472, the general cap on noneconomic damages increased to $1.5 million for qualifying civil actions and claims subject to the new law.
For people seriously injured in car crashes, truck accidents, motorcycle collisions, and other incidents, the change can substantially affect the potential value of a claim.
What Are Noneconomic Damages?
Personal injury compensation is commonly divided into economic and noneconomic damages.
Economic damages compensate for measurable financial losses, such as medical expenses, lost wages, and future financial losses.
Noneconomic damages compensate for consequences that do not come with an invoice.
They can include:
- Physical pain and suffering
- Emotional stress
- Inconvenience
- Loss of enjoyment of life
- Other nonfinancial effects of an injury
These damages can be particularly important when an injury permanently changes how someone works, sleeps, exercises, cares for family members, or participates in everyday life.
What Did HB 24-1472 Change?
Colorado enacted HB 24-1472 in 2024, with the major changes taking effect January 1, 2025.
For qualifying personal injury claims under the new framework, the general limit for noneconomic loss or injury is $1.5 million.
The previous statutory system used a much lower base limit and allowed a higher ceiling when a court found sufficient justification. The new law replaces that structure for claims subject to the new provisions with the substantially higher $1.5 million limit.
Beginning in 2028, the new general cap will be adjusted for inflation every two years.
Does the $1.5 Million Cap Apply to Every Colorado Injury Case?
No.
The date of the injury or claim and when an action is filed can affect which version of Colorado’s law applies. An accident that occurred before the new law became applicable may be governed by the previous damage limits.
Certain types of claims also operate under different rules.
Medical malpractice, for example, has its own damage-cap system. HB 24-1472 increases medical malpractice limits gradually over several years rather than immediately applying the general $1.5 million cap.
Wrongful death claims also have a separate noneconomic damages limit. Under the legislation, that limit increased to $2.125 million for claims governed by the new law.
Claims involving government entities and certain other specialized cases may be subject to separate statutory limitations as well.
Does the Cap Limit Medical Bills and Lost Wages?
The general $1.5 million figure applies to noneconomic damages, not simply to every dollar that can be recovered in a personal injury case.
Economic losses are analyzed separately.
For example, a catastrophically injured person might require surgeries, rehabilitation, future medical care, modifications to a home, and years of lost earning capacity. Those financial losses are distinct from compensation for the person’s pain, inconvenience, and loss of enjoyment of life.
That distinction is important when evaluating a serious injury claim. The $1.5 million noneconomic cap shouldn’t automatically be treated as a cap on the entire case.
What About Permanent Impairment and Disfigurement?
Colorado law can distinguish damages for physical impairment and disfigurement from ordinary noneconomic damages.
That distinction can become particularly important after catastrophic injuries involving permanent mobility limitations, loss of bodily function, significant scarring, amputations, or similar consequences.
A serious injury case should therefore be evaluated by identifying the different categories of damages rather than placing every consequence of an injury under the general label of “pain and suffering.”
Why Legal Guidance Matters
HB 24-1472 gives seriously injured Coloradans greater potential to recover compensation for the human consequences of an accident but determining which damage limits apply can still be complicated.
The accident date, nature of the claim, available insurance, extent of the injuries, and categories of damages can all affect the analysis.
Arckey & Steele can help Colorado accident victims identify the damages available in their case, document long-term injuries, and determine how the state’s revised damage caps apply to their particular claim.
