An accident can create financial problems long after the immediate emergency has passed. Medical bills may arrive while an injured person is unable to work, and serious injuries can require ongoing care or permanently affect earning potential. In a personal injury claim, these measurable financial losses are generally known as economic damages.
Understanding economic damages is important because an insurance company may focus only on expenses that have already been documented. A complete claim should also consider losses that are reasonably expected to arise in the future.
What Are Economic Damages?
Economic damages compensate an injured person for the monetary losses caused by an accident or wrongful act. Unlike non-economic damages, which address consequences such as pain, emotional distress, and loss of enjoyment of life, economic damages can usually be supported with bills, receipts, wage records, estimates, or expert testimony.
The purpose of these damages is to place the injured person as close as reasonably possible to the financial position they would have occupied if the injury had not occurred.
Medical Expenses
Medical expenses are often a significant part of an economic damages claim.
Recoverable expenses may include:
- Ambulance transportation and emergency room care
- Hospital stays and surgical procedures
- Appointments with physicians and specialists
- Diagnostic testing and medical imaging
- Prescription medications
- Physical, occupational, or cognitive therapy
- Mental health treatment related to the injury
- Medical equipment and mobility aids
- In-home nursing or attendant care
- Transportation required to obtain treatment
Keeping complete treatment and billing records is essential. A claimant must generally show that the care was reasonably necessary and related to the injuries caused by the accident.
Future Medical Care
Some injuries require treatment well beyond the resolution of a lawsuit or insurance claim. Future economic damages may account for additional surgery, rehabilitation, medication, medical equipment, home health assistance, or long-term care.
Future medical expenses cannot be based on speculation. Medical professionals may need to explain what care will probably be required, how often it will be needed, and how long treatment is expected to continue. Economists, life-care planners, or other experts may then estimate the cost of that care.
Lost Wages
An injured person may be entitled to compensation for income lost while attending medical appointments, recovering at home, or working reduced hours. Evidence of lost income may include pay stubs, tax returns, employment records, schedules, or a written statement from the employer.
Self-employed workers may need additional evidence, such as invoices, contracts, profit-and-loss statements, appointment records, or prior tax filings. Because business income can fluctuate, several years of financial records may be necessary to establish a reliable earnings history.
Loss of Earning Capacity
Lost wages and diminished earning capacity are related but distinct. Lost wages reflect income missed during a specific period. Loss of earning capacity concerns an injury’s effect on the person’s ability to earn income in the future.
A person may have a diminished earning capacity even after returning to work. For example, an injury could prevent someone from performing physical labor, accepting overtime, traveling for work, pursuing a promotion, or remaining in a former profession. A younger worker may face decades of reduced earnings.
Calculating this loss may require testimony from vocational rehabilitation specialists and economists. Relevant considerations can include the person’s age, education, skills, employment history, career path, physical limitations, expected work life, and opportunities for retraining.
Property Damage
When an accident damages property, economic damages may include reasonable repair costs or the property’s value if it cannot be repaired. A car accident or truck accident claim may also involve towing, storage, rental-car charges, or loss-of-use expenses.
Photographs, repair estimates, purchase records, and valuation reports can help establish the amount of the loss.
Out-of-Pocket Expenses
An injured person may also incur other accident-related expenses, including the cost of modifying a home or vehicle, hiring help for necessary household services, or traveling to medical appointments.
Whether a particular expense is recoverable depends on its necessity, reasonableness, and connection to the injury.
Evidence That Can Support an Economic Damages Claim
Useful documentation for supporting an economic damages claim may include:
- Medical bills, records, and insurance statements
- Prescription and medical equipment receipts
- Pay stubs, tax returns, and employment records
- Written verification of missed work
- Repair estimates and property photographs
- Mileage and transportation records
- Receipts for replacement services
- Expert reports addressing future care or earnings
Claimants should preserve original records and maintain a running list of expenses. Gaps in medical treatment or missing financial documents may give an insurer grounds to dispute whether a loss was caused by the accident.
Contact a Shreveport Personal Injury Lawyer at Desiah Injury Lawyers for a Free Consultation
Economic damages may include far more than the bills currently sitting on a kitchen table. A careful assessment should consider medical expenses, lost income, reduced earning ability, damaged property, and the future costs created by the injury.
Desiah Injury Lawyers helps injured people in Louisiana investigate their losses, document their claims, and pursue appropriate compensation. Contact our law offices today at (318) 252-3034 to schedule a free consultation with a Shreveport personal injury lawyer and learn how the circumstances of your injury may affect your legal options.
