A Guide to Economic and Non-Economic Damages in Personal Injury Lawsuits

When an accident happens, the impact goes beyond just physical injuries. Victims often face financial burdens, emotional distress, and lasting pain. In personal injury lawsuits, the law allows injured individuals to seek compensation for these losses. But not all damages are the same.

Consult a personal injury lawyer from Rosenberg & Gluck LLP if you’re pursuing a claim. They can help you understand the different types of compensation available and help in the process involved in securing them.

Generally, these damages fall into two categories—economic and non-economic damages. Knowing the difference can give you a clearer picture of what to expect from your case.

Now, let’s break down these damages and discuss how they apply in personal injury claims.

What Are Economic Damages?

Economic damages refer to the financial losses directly caused by an injury. These are measurable expenses that can be proven with bills, receipts, and other records. The goal is to restore the victim to their financial position before the accident.

Examples of Economic Damages

• Medical Expenses: This includes hospital bills, doctor visits, physical therapy, prescription medications, and any future medical treatments related to the injury.
• Lost Wages: If the injury forces you to take time off work, you can claim compensation for lost income. This also covers reduced earning capacity if you can no longer perform the same job.
• Property Damage: If your personal belongings, such as a vehicle, were damaged in the accident, repair or replacement costs fall under economic damages.
• Rehabilitation Costs: Some injuries require long-term physical therapy or specialized treatments, which can be included in the claim.
• Other Out-of-Pocket Expenses: Transportation to medical appointments, home modifications for disabilities, or hiring help for daily tasks are also considered economic damages.

What Are Non-Economic Damages?

Unlike economic damages, non-economic damages don’t have a clear dollar amount. These losses are more personal and subjective, making them harder to calculate.

However, they are just as important because they recognize the emotional and psychological toll of an injury.

Examples of Non-Economic Damages

• Pain and Suffering: This covers physical pain and discomfort caused by the injury, both immediately and in the long term.
• Emotional Distress: Anxiety, depression, PTSD, and other mental health struggles resulting from the accident fall under this category.
• Loss of Enjoyment of Life: If the injury prevents you from participating in hobbies, sports, or other activities you once enjoyed, you may be compensated.
• Loss of Consortium: When an injury affects a person’s relationship with their spouse or family, damages can be awarded for the loss of companionship and support.
• Scarring and Disfigurement: If an injury leaves permanent scars or changes a person’s appearance, it can impact self-esteem and quality of life, which may be considered in the claim.

How Are These Damages Calculated?

Economic damages are straightforward because they rely on actual expenses and lost income. Lawyers and insurance companies use receipts, pay stubs, and medical records to determine the exact amount.

Non-economic damages, however, are more complex. Since there’s no fixed price for pain or emotional suffering, courts and insurance companies often use different methods to estimate compensation.

Some use a multiplier method, where economic damages are multiplied by a number based on the severity of the injury. Others rely on a per diem approach, assigning a daily value to pain and suffering.

Final Thoughts

Understanding the difference between economic and non-economic damages is crucial when filing a personal injury lawsuit.

If you or someone you know has been injured due to someone else’s negligence, a personal injury lawyer can help ensure fair compensation. Knowing what you’re entitled to can make a significant difference in your recovery journey.

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