Economic Damages Explained

After an injury, you might be entitled to compensation in the form of economic and non-economic damages. It can be difficult to understand the difference. We’re here to help!

What Are Economic Damages?

Economic damages refer to monetary compensation awarded to a person who has suffered a loss due to the wrongful or negligent actions of another party. These damages are intended to restore the injured party to the financial position they were in before the harm occurred. They are often awarded in legal cases involving personal injury, premises liability, vehicle crashes, property damage, or other torts.

Here are some basic examples to explain economic damages:

Medical Expenses

Example – Jane is injured in a car accident caused by another driver’s negligence. She incurs medical expenses for hospital stays, surgeries, medications, and physical therapy. The court awards her economic damages to cover these medical costs.

Lost Wages

Example – John slips and falls in a store due to a wet floor that wasn’t cleaned up or properly marked. He is unable to work for three months due to his injuries. He receives economic damages for the wages he lost during his recovery period.

Property Damage

Example – A driver loses control of their car and hits Sally’s house, damaging the front of the house. She receives economic damages for the costs to repair the house and temporary housing until the repairs are completed.

Future Medical Costs

Example – Emma suffers a permanent disability from an elevator malfunction due to improper maintenance. She requires ongoing medical treatment and rehabilitation. Economic damages are awarded to cover her future medical expenses.

Loss of Earning Capacity

Example – Mark, a skilled construction worker, loses his ability to work due to an injury caused by another contractor on the job site. The court awards him economic damages for the reduction in his future earning potential.

Economic Damages Summary

Economic damages are quantifiable and can be supported by documentation such as medical bills, pay stubs, repair estimates/bills, receipts, and financial records. The goal is to compensate the injured party for their financial losses, and does not include compensation for non-economic damages like pain and suffering.

When To Contact A Personal Injury Attorney

If you have a physical injury as a result of someone else’s negligence, a personal injury attorney may be able to help you. Contact a personal injury attorney at Kane & Silverman for a free injury case evaluation.