How Is Compensation for Lost Earning Capacity Measured in a Personal Injury Case?

 Posted on February 18,2022 in Personal Injury Lawsuits

When someone is seriously hurt in an accident, they may be unable to work at all while they are recovering from the injury. Some injured people are never able to work again. Those who can return to work may need to change careers or take a lower-paying position. Fortunately, many accident victims are entitled to compensation for lost earning capacity.

Reduced Income Earning Potential Caused by a Serious Injury

Being involved in a car crash, fire, work accident, or another injurious incident may force someone to miss work for several weeks or months while they recover. However, if an injury causes permanent disability or loss of function, the injured person may never again be able to work in his or her chosen profession. For example, a construction worker that loses the ability to walk in a horrific car accident may be forced to take a desk job when he returns to work making less money than he did before the accident.

Damages in a personal injury case often include lost wages from missed work. However, some injured claimants are also entitled to compensation for lost earning capacity or lost earning potential.

How is the Value of Reduced Earning Capacity Measured?

Lost earning capacity refers to the reduction in a person’s ability to make money in the future. The factors used to calculate the extent of an injured person’s lost earning capacity include:

• How long the loss of functioning will likely last
• Whether the injured person will be able to return to his or her regular job
• The injured person’s work history
• The injured person’s age, health, and life expectancy

In a personal injury case involving lost earning capacity, expert testimony provided by professionals may be used to determine the value of the injured person’s lost earning potential. Doctors and mental health experts can attest to how the injury impairs the injured person’s ability to work and perform tasks like driving. A vocational rehabilitation expert can explain what the recovery process may look like and how long it will take for the injured person to regain functioning. Economists and other financial professionals can provide insight into the injured person’s profession and expected earnings.

Contact a Lake County Personal Injury Lawyer

If you or a loved one suffered serious injury in an accident, contact the Waukegan personal injury attorneys at Salvi & Maher, LLP for help. We can evaluate your case and help you determine the types of damages you may be entitled to. Call our office today at 847-662-3303 for a free consultation.

Source:

https://www.investopedia.com/terms/e/earning-potential.asp