What Are Economic Damages? Are You Eligible for Compensation?

Personal injury, whether through a car accident, slip and fall, defective product, or even medical malpractice, often sets off a chain of events for the victim. The aftermath can leave you knocked out, confused, terrified, and scared for your life. Then comes the pain, which can start immediately or weeks after the accident. Sudden bills, like medical expenses, often start to pile up pretty quickly. All this is exacerbated by the fact that the injury may render you immobile, confined to a hospital bed, or at home recovering instead of being at work, where you can make money to cover these expenses.

Fortunately, you may recover some of these costs by suing the person you believe was responsible for your injury. These lawsuits are called personal injury claims. While you can initiate and pursue one yourself, you’re better off working with an attorney. This professional will help you identify all the possible claims, calculate the damages, gather evidence to prove them and negotiate for a fair settlement. Keep reading to learn more about economic damages and how to recover them in your suit.

What Are Economic Damages? 

“Think medical bills, lost income, and other out-of-pocket expenses—these are referred to as economic damages because they affect the economic aspect of your life. These are tangible losses that actively take money out of your pocket,” says personal injury attorney Charles W. Whetstone, Jr. of Whetstone Perkins & Fulda. Here are several common examples:

• Past medical bills: emergency room visits, surgeries, and even hospital stays.

• Future medical bills: these are estimated expenses for the medical treatment that you will need in the future, like physical therapy, medication, and even surgeries.

• Rehabilitation costs: If the accident results in you losing any abilities, you may be eligible for compensation for physical or occupational therapy to regain these lost abilities.

• Lost wages: Depending on the nature and the severity of your injury, you will likely need time to recover. Personal injury claims allow you to recoup the wages that you lost during this period.

• Loss of earning capacity: Severe injuries like broken limbs may force you to change careers, sometimes switching to a lesser-paying occupation because of reduced injury-related capabilities. This is what is known as loss of earning capacity, and you may be able to recover these damages in a lawsuit.

• Property damage: You can also recover costs related to damaged property. For instance, if your laptop gets damaged in a car accident, you can sue the responsible party for replacement costs.

• Out-of-pocket expenses: Any miscellaneous fees related to your incident, like transport to and from the hospital, necessary home modifications, and others.

How to Prove Economic Damages for Your Personal Injury Lawsuit

By now, you understand the different types of economic damages, so how can you prove them and come out ahead? Here’s what you should know:

• Organize evidence: You’ll need extensive documentation to substantiate your claim. So, keep track of medical records, pay stubs, tax returns, police reports, surveillance footage, and anything else you can use to pursue damages.

• Work with an attorney: A lawyer can help you collect and document evidence for the claim. With experience handling cases like yours before, they know which evidence can make or break the case.

• Rely on expert witness testimony: An expert witness is a professional with experience in a specific field that puts them in a position to explain certain aspects of the case. For instance, an accident reconstruction expert can be called to the stand to narrate how the accident happened based on their analysis.

Making Sense of Economic Damages in Personal Injury

So you see, economic damages are those losses that actively take money out of your pocket, such as medical bills, lost wages, and property damages. The financial harm is immediate, and you can easily prove them using receipts, invoices, and other financial records. Legal guidance is often necessary to calculate these damages, collect and submit proof, and negotiate for a fair settlement.