You may be entitled to compensation when you’re injured because of another person’s careless actions in a motorcycle accident, bicycle accident, or other incident. In personal injury cases, many types of losses might occur. Among these are “economic damages.”
Understanding what economic damages are, how they are calculated, and why they matter can help you know what to expect after an accident. It can also prepare you to work with an attorney who can guide you through the legal process.
What Are Economic Damages?
Economic damages are the measurable financial losses that result from an injury. Unlike non-economic damages — which cover things like pain and suffering — economic damages focus on costs you can prove with bills, receipts, or records. The main goal is to make you financially whole again.
These losses usually fall into a few main categories. Although each case is different, understanding these categories can help you determine what expenses you might recover.
Common Types of Economic Damages
One of the main types of economic damages is medical expenses. When you’re hurt, you might need to see a doctor, undergo surgery, attend physical therapy sessions, or take prescription medications. All these costs count as economic damages. It’s important to keep track of every medical bill you receive because this proof will help show the extent of your losses.
Another common form of economic damages is lost wages, including both past and future income. If your injury keeps you out of work for days, weeks, or even longer, you can seek compensation for the income you missed.
Property damage is another type of economic loss. If your vehicle is damaged in a car accident or your belongings are destroyed, you can ask for money to repair or replace them. Although this might seem minor compared to medical costs, it’s still an important part of making sure all your financial losses are covered.
You might also face other out-of-pocket expenses connected to the injury. For example, if you must hire help around the house because you can’t do certain tasks, or if you need special equipment like a wheelchair ramp, those are also considered economic damages. Any cost tied directly to your injury that you prove with a receipt or invoice may count as an economic loss.
How Are Economic Damages Calculated?
Calculating economic damages often involves adding up your various costs. For example, if you have hospital bills, you would add those up. You’d do the same for your lost wages by looking at how much you earned before your injury and how many days you missed. For future losses, such as ongoing medical care or future lost income, an expert can help estimate what you’ll need down the road.
For future medical costs, a doctor or healthcare professional might provide insight into how long you’ll need treatment or therapy. If your earning capacity is reduced, an economist or vocational expert may determine how much income you will likely lose over time. These experts rely on your work history, your age, and the outlook for your field to make reasonable predictions.
Why Is Evidence So Important?
Evidence is key to recovering economic damages. Without proper proof, it’s hard to show that you actually suffered financial losses. This is why it’s essential to keep detailed records. Save every medical bill, prescription receipt, pay stub, repair invoice, and any other document showing what you spent or lost because of the accident.
If you have trouble gathering this information, an attorney can help. A lawyer knows how to request and organize the evidence needed to present a strong case. They can contact your healthcare providers for medical records, work with experts to forecast future losses, and ensure that all the numbers add up in your favor.
If you have questions about economic damages or need help pursuing a personal injury claim, consider contacting a personal injury attorney in Northbrook.