Economic Damages

You can file a claim for damages if you are injured in an accident or due to another party’s wrongdoing. Most personal injury cases are settled outside of court, but you can pursue a lawsuit if you’re unable to reach a fair settlement.

Damages in a personal injury claim fall into two categories:

• Economic Damages – Financial losses and expenses related to the accident, your injuries, and your recovery
• Non-Economic Damages – Intangible harm you sustained, including pain and suffering

Here, our personal injury lawyers discuss economic damages and what you need to know about recovering a fair settlement for your losses.

Defining Economic Damages in a Personal Injury Case

An award for economic damages reimburses you for past expenses and monetary losses. You can also receive compensation for future damages if your injuries cause a permanent impairment that will result in ongoing costs and losses.

Examples of economic damages include:

Initial and Ongoing Medical Expenses

After an accident, you may require extensive medical treatment. 

Medical expenses could include:

• Emergency medical services
• Hospitalizations
• Surgery
• Diagnostic tests, including X-rays, CAT scans, blood work, and MRIs
• Doctor’s bills
• Occupational, physical, and other rehabilitative therapy

If you sustain permanent disabilities, you may incur ongoing medical expenses. If so, you can receive an amount that covers your estimated future medical bills. You may need medical specialists to testify about the care that will be needed and the estimated costs.

Property Damage

Your property may be damaged in an accident. If so, the at-fault party could be liable for the costs to repair the property. If the property is totaled, they are responsible for reimbursement for the fair market value of the property.

Generally, property damage claims are settled early in the case. However, be cautious when signing documents. You do not want to release your personal injury claim when releasing the property damage claim.

Loss of Earnings and Income

You may experience a significant loss of income if you cannot work while you recover from your injuries. You can secure compensation for your lost wages. However, your economic damages may include more than just lost wages. You may recover compensation for the benefits you would have received had you been able to work, such as paid time off and matching retirement funds.

You can also seek damages for your future lost wages if you sustain a lifelong impairment. If your impairment results in a loss of earning capacity, you can demand compensation for the difference between what you could have earned had you not been injured and the amount you can earn given your impairment.

Out-of-Pocket Expenses

You may experience financial losses other than medical bills, property damage, and lost income. 

Here are other expenses that could be included in your economic damages:

• Household services if your injuries prevent you from doing chores
• Travel expenses to and from medical appointments
• Long-term personal and/or nursing care
• Funeral expenses in a wrongful death case
• The cost of modifications to your home and vehicle because of a disabling condition

Out-of-pocket costs are often overlooked because injured parties do not document these damages. Keeping detailed records of all financial losses and expenses can increase the value of your economic damages.

How Do You Value Economic Damages for a Personal Injury Claim?

Economic damages equal the actual financial losses you incur because of the accident and injury. Therefore, you need evidence proving how much you paid or lost because of the accident, your injuries, and your recovery. 

Factors that can impact the value of economic damages include:

• The cost of your medical treatment
• The duration of your recovery period
• The cost of repairing or replacing personal property
• The expenses associated with your rehabilitation and recovery
• The total of your loss of income and benefits
• Out-of-pocket expenses
• The impact your injuries have on future earning capacity
• How your injuries impact your daily life, such as needing personal care or household services
• The availability of insurance coverage and the policy limits
• Whether you are partially to blame for causing your injuries (i.e., comparative fault)
• The parties involved in the case

A personal injury attorney may hire experts to assist in valuing future damages. Medical specialists, vocational experts, personal care professionals, financial analysts, and economists are some of the experts that might help with calculating economic damages.

Are There Time Limits for Filing a Claim for Economic Damages?

Each state has a statute of limitations for filing personal injury lawsuits. Your economic damages are part of the case. You must settle your claim or file a lawsuit before the statute of limitations expires. If you file a lawsuit after the deadline, the court can dismiss it without considering your claim.

If you are injured in an accident, the best way to protect your right to fair compensation is to seek legal advice from an experienced personal injury lawyer. An attorney can help you document your damages and calculate the fair value of your claim. Contact Parkie & McConkie Personal Injury Lawyers at (801) 845-0440 to schedule your free consultation with our experienced attorneys.