Types of Economic Damages

Individuals who have been injured due to another individual’s recklessness, carelessness, or negligence may be able to file a personal injury claim to recover compensation for any losses. Generally speaking, there are three main types of damages that an injury victim may pursue – economic, non-economic, and punitive. In this article, we will explore some of the most commonly recovered economic damages.

What are Economic Damages?

In understanding what types of economic damages you may be able to recover compensation for in a personal injury claim, it is first important to understand what economic damages are and how they differ from non-economic and punitive damages. Economic damages refer to the tangible, quantifiable losses that are directly related to the injury and seek to compensate the injury victim for the amount of money they have lost or will lose in the future due to the injury. The monetary value of economic damages is more easily determined than the other types of damages as they are based on actual expenses and are dependent on important documents such as bills and receipts. On the other hand, non-economic damages cover the intangible and unquantifiable losses related to the injury, such as pain and suffering or loss of companionship. Finally, punitive damages are awarded in the circumstances where the incident was particularly egregious and severe to punish the defendant for their actions.

Medical Expenses

Medical expenses are, perhaps, the most commonly thought of economic damage in personal injury claims, and they include all the costs associated with treating the injury. It is important that you keep an accurate documentation of all of your medical expenses as this is crucial to ensuring that you receive maximum compensation. According to the New Haven injury attorneys at Jacobs & Jacobs, these expenses include but are not limited to:

• Emergency room or hospital visits
• Ambulance bills
• Surgeries
• Medical equipment
• Medications
• Doctor’s appointment
• Rehabilitation or physical therapy sessions
• Ongoing medical treatment and care

Out-of-Pocket Expenses

In addition to recovering compensation for medical expenses, you may also be able to recover compensation for any out-of-pocket expenses related to the injury. Like medical expenses, these expenses are also dependent upon detailed records and documentation that includes total costs. Some of these expenses may include:

• Transportation costs to travel to and from medical appointments, particularly if special transportation, such as wheelchair-accessible vehicles, is needed.
• Costs of in-home nursing care if the injury victim is unable to care for themselves.
• Costs of modifying the injury victim’s home or workspace to accommodate their new injury or disability.
• Childcare costs if the injury victim is no longer able to care for their children while in recovery.

Lost Wages

Sometimes, particularly in more serious accidents, the injury victim will have to take time off of work in order to focus on their recovery. In this case, they may be able to recover compensation for the lost wages that they would have earned had they not been injured. This may include anything from the victim’s usual salary or hourly, as well as any bonuses or commissions that they missed out on. In addition, they may be able to recover compensation for the value of any sick leave or vacation pay used during recovery. Documentation will likely need to be obtained from the injury victim’s employer in order to confirm these amounts. 

Lost Earning Capacity

The last type of economic damage that is commonly recovered by injury victims is lost earning capacity. This type of compensation refers to the reduction in a victim’s ability to earn future income due to their injury. This differs from the last wages, which encompasses any past income losses. Compensation amounts for lost earning capacity take into account factors such as whether the victim is forced to change careers, accept a lower-paying job, or work fewer hours due to the limitations inflicted by their injury.