What Are Economic Damages?

Understanding Economic Damages in Personal Injury Claims

In a personal injury case, there are several types of damages one can pursue. Economic damages are the actual financial losses that result from an accident, serious injury, or wrongful death. These damages are tangible and have a set dollar value, but that does not necessarily mean that they are easy to calculate.  Let’s take a closer look. 

Examples of Economic Damages

Economic damages are meant to cover the actual, measurable losses someone suffers after an injury. These are the out-of-pocket expenses and financial setbacks that can be calculated in dollars and cents. They’re not abstract; they’re the concrete ways an accident can disrupt your life and your ability to earn a living.

Here are some common examples of economic damages: 

  • Medical Expenses: This includes everything from emergency room visits and surgeries to physical therapy, prescription medications, and future medical care you might need because of your injury.
  • Lost Wages: If your injury forces you to miss work, you can seek compensation for the income you lost during that time. This also covers things like missed bonuses, overtime, or any other benefits tied to your job.
  • Loss of Earning Capacity: Sometimes, an injury can change what kind of work you’re able to do or even whether you can work at all. In those cases, economic damages can include the difference between what you could earn before and what you’re now able to earn.
  • Rehabilitation Costs: This covers things like occupational therapy, speech therapy, or any specialized care needed to help you recover or adapt to life after your injury.
  • Out-of-Pocket Expenses: These are the day-to-day costs that pile up after an accident, like transportation to medical appointments, home modifications, or hiring help for household tasks you can no longer do yourself.

Every case is different, so economic damages will vary depending on the nature of your injury, the kind of work you do, and the long-term effects on your life.

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Are There Other Types of Damages? 

There are two main types of damages: compensatory and punitive damages.

Compensatory Damages: 
These are awarded to compensate the victim for their losses, both financial and non-financial in nature.

Punitive, or Exemplary, Damages
These are awarded to the victim as a way of punishing the defendant for egregious negligence or gross misconduct.

Compensatory damages are further classified as either: 

Economic Damages
Economic damages are the financial costs associated with your injury. These include medical bills, lost wages, future treatment expenses, and other out-of-pocket losses. If it has a receipt, a bill, or a price tag, it likely falls in this category.

Non-Economic Damages
Non-economic damages, on the other hand, cover the intangible effects of an injury. These might include things such as pain and suffering or emotional distress. While economic damages are generally more straightforward and easier to prove, non-economic damages can be trickier. That’s why having the right legal team matters. Juries and insurance companies need to understand the full extent of what you've been through, not just what you've paid.

How Are Economic Damages Calculated?

Calculating economic damages isn’t just about adding up bills. It involves demonstrating the full financial scope of your injury, both now and in the future. Here’s how it typically works:

  • Medical Costs: When we take on a personal injury claim, we gather all of the past and current medical bills, including ER visits, hospital stays, surgeries, medications, therapy, and assistive equipment. Then we consult with medical experts to estimate the kind of treatment our clients will need down the road and how much it will cost.
  • Lost Income: If a client missed work, we look at pay stubs and employment history to determine how much income was lost. If they can’t return to the same job (or can’t work at all) we work with vocational and economic experts to project future losses.
  • Other Financial Losses: We also include all the extra costs, such as transportation to medical appointments, hiring in-home care, childcare, and anything else a client wouldn’t have had to pay for if they hadn’t been injured.

Calculating these damages isn’t always simple, especially when future losses are involved. That’s why we often bring in economists, life care planners, and other experts to help us build a claim that truly reflects the long-term impact of your injury. Our goal is to make sure you’re not just compensated for what you’ve already lost but also for what you’ll continue to need as you navigate your physical and emotional recovery.

At Arnold & Itkin, We Fight for Everything You Deserve

Our personal injury attorneys know that an injury affects your life beyond just your finances. While the dollar value of your damages can be immense, the toll on your physical health and emotional wellbeing can be just as great—if not greater. We build cases that reflect the true value of our clients’ losses, from medical expenses and projected future care costs to lasting emotional distress and trauma.

Learn how we can help you fight for the fair compensation you deserve. Call (888) 493-1629 for a free consultation.

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