What You Need to Know About the Increased Damage Caps in Colorado in 2025
In 2025, Colorado will implement updated damage caps for personal injury cases, increasing the maximum compensation allowed for certain claims. These changes reflect adjustments to inflation and evolving economic considerations. Additionally, the law is updating who is allowed to sue for wrongful death, allowing a spouse, sibling, parent, or child to take action in certain circumstances.
These new damage caps may significantly affect how compensation is calculated in personal injury claims, potentially allowing for higher recoveries for victims. At Mintz Law Firm, we’re prepared to navigate these updates effectively and advocate for fair compensation under the revised limits. We offer free consultations and work on contingency, so you don’t have to worry about paying us until you win your claim.
What Damage Caps are Increasing in 2025?
Many changes to damage caps may affect your claim starting in 2025, such as:
Non-Economic Damages
For civil actions filed January 1, 2025, or later—including personal injury claims—non-economic damages will have a much larger cap. Non-economic damages are losses without an objective monetary value, such as pain and suffering, scarring and disfigurement, or loss of enjoyment of life. Previously, non-economic damages were capped at $250,000, but the new updates to Colorado law increase the cap to $1.5 million. Furthermore, starting 2028 and every two years following, the caps for non-economic damages will adjust based on inflation.
Medical Malpractice Non-Economic Damages
Medical malpractice claims previously had a cap for non-economic damages sitting at $300,000. The new cap will more than double over five years, with the first incremental increases beginning on January 1, 2025. At the end of five years, the cap will have increased to $875,000 and then adjusted every two years based on inflation.
Updates in Wrongful Death Law
Wrongful death claims now have a damage cap of $2.125 million, which will also adjust every two years after 2028.
Additionally, the law has been updated to allow more individuals to sue for wrongful death. Previously, only the spouse, a child, or a parent would have the right to file a claim for the wrongful death of an individual. Now, a sibling may also be eligible to file for wrongful death in Colorado.
Medical malpractice wrongful death claims will also have a cap increase. Over the next five years, the cap for medical malpractice contributing to wrongful death will be $1.575 million. Then, the cap will continue to adjust with inflation every two years following.
What is the Purpose of a Damage Cap?
Damage caps are primarily placed with the argument that they protect the economy. Some claim that damage caps prevent businesses from filing for bankruptcy. For example, according to Find Law, these caps decrease liability on doctors and other healthcare professionals, therefore keeping healthcare costs low. These arguments are also used to claim that damage caps keep insurance costs low.
Damage caps may also keep legal matters from taking longer than necessary. If someone could continue to argue for infinite amounts of money, then claims and trials would take much longer, and costs would continue to climb.
How Do Damage Caps Affect Personal Injury Victims?
Damage caps may sound like a bad idea for personal injury victims, as individuals may not be able to get the complete compensation they need from their claim. Luckily, Colorado’s damage cap updates should only help victims in need. While there is a general cap on non-economic damages, Colorado does not have a cap on economic damages. This means that victims should still be able to receive payments for their medical bills and other monetary losses, which typically make up the majority of compensation.
Need a Personal Injury Lawyer? Get Extraordinary Support From the Qualified Attorneys at Mintz Law Firm
Navigating the changes to Colorado’s damage caps in 2025 can be complex, but we’re here to help you every step of the way. At Mintz Law Firm, we stay informed about legal updates so you can feel confident pursuing the compensation you deserve.
From understanding the new damage caps to maximizing your claim’s potential, we’re ready to assist. Contact us today for a free consultation by calling (303) 462-2999 or visiting our contact form.