Many times, when someone is injured due to another person’s negligence, they suffer serious financial losses. These include medical bills, lost wages, and other injury-related expenses.
The victim may find it difficult to recover financially without appropriate compensation. This is why economic damages are crucial in personal injury lawsuits.
Usually, the economic damages are easy to calculate since they are based on real financial losses. As a result, economic damages provide a clear picture of the victim’s loss. In this article, we will discuss the importance of economic damages in a personal injury claim.
Covers Medical Expenses
Medical treatment after an accident can be costly, and expenses can quickly add up. Victims may need follow-up treatments, hospital stays, emergency care, and even surgery. Should the injury cause long-term health problems, future medical expenses also have to be taken into account.
- Ambulance fees, ER visits, and initial treatment are all part of emergency care.
- Ongoing medical expenses cover rehabilitation, prescription drugs, and physical therapy.
- Future medical expenses include specialist visits, long-term treatments, or surgery.
For many victims, covering these expenses without economic damages would prove challenging. Therefore, compensation ensures they get the necessary medical treatment without dealing with the financial burden.
Provides Compensation for Lost Wages and Future Earning Potential
Injuries can force injured victims to quit their jobs permanently or take time off from work. When this occurs, lost incomes can become a major financial burden. Compensation for lost wages enables victims to recover the income they would have made had they not been injured.
Temporary lost wages cover income lost during injury recovery. Should the victim be unable to perform the same job, loss of earning capacity must be considered.
Future income loss is taken into account should the damage compromise long-term professional opportunities. Victims may struggle to pay bills and support their families without compensation for lost wages. Economic damages ensure they are not left without financial stability.
Covers Property Damage and Repair Costs
Personal items, including vehicles, electronics, and clothing, can be destroyed in an accident. Repairing or replacing these things can be costly, and victims shouldn’t have to pay for these expenses on their own.
Accidents like car accidents often lead to property damage. Depending on the severity of the damages, compensation can cover the cost of repairing or replacing said property.
This can also cover other properties such as phones, laptops, handbags, etc. Economic damages enable victims to finance these expenses, allowing them to restore their property without adding to the financial hardship.
Accounts for Additional Out-of-Pocket Expenses
Personal injury claims also cover additional expenses that may arise due to the injury. Though at first, they might appear insignificant, over time these expenses can become massive. All reasonable expenses resulting from the accident are covered by economic damages.
Medical appointment travel expenses, including public transportation costs or fuel costs. Home care services for people injured enough to require help with daily tasks.
Expenses related to childcare should the victim be unable to take care of their children during recovery. Including these costs in the lawsuit helps victims get full compensation for the financial toll their injuries cause.
Determines Personal Injury Settlement Amounts
The amount of compensation a victim gets mostly depends on their economic damages. The major portion of the settlement amount is determined by these damages. Economic damages offer a good basis for negotiations since they are grounded on real expenses.
The base compensation is decided upon in part by medical bills and lost income. Total claim value includes out-of-pocket expenses and property damage.
The total compensation amount increases with future losses, including lost earning potential and long-term medical treatment. A strong case with well-documented economic damages increases your chances of getting fair compensation.
