If you have been injured in an accident and are pursuing a personal injury claim or lawsuit, understanding the different types of compensation you may be entitled to is important in protecting your rights. Continue reading to discover how economic and non-economic damages are different and the purposes they each serve. Work with a knowledgeable Pikeville, KY personal injury lawyer for skilled representation.
How Are Economic and Non-Economic Damages Different?
Economic and non-economic damages are different from one another in a variety of ways, including the purpose they serve, the types of losses they reimburse, the evidence required to establish the damages, and how they are calculated.
While they have many differences, the two types of damages are equally important and compensate a victim for all losses caused by the accident and injury.
What Are Economic Damages?
Economic damages are compensation awarded to the victim of an accident and injury for real, tangible, financial losses that they have suffered. When an individual sustained damages that required them to pay out of pocket or lose money in some way due to another party’s actions, they can be reimbursed for those expenses.
Common examples of economic damages include medical expenses, lost wages from time taken off work, costs to repair property damage, transportation to medical appointments, in-home care, and more.
Economic damages are easily quantified and proven, as each cost is associated with a specific monetary value. Required evidence includes medical bills, repair estimates, pay stubs, commission history, receipts, and invoices. By simply collecting these pieces of evidence and adding them up, you can easily calculate the total economic damages sustained in the accident.
What Are Non-Economic Damages?
Non-economic damages, on the other hand, are non-monetary losses resulting from an injury. When an individual suffers harm, it results in more than just financial expenses, it also impacts their mental state and nearly every aspect of their life. A victim can be compensated for the non-monetary ways in which they have been affected.
Common examples of these damages include emotional distress, the development of anxiety, depression, and PTSD, the loss of enjoyment of life, loss of consortium, disfigurement, physical pain and suffering, etc. These can impact a person just as much as financial losses, so it is important that they are recognized by personal injury law.
Non-economic damages are harder to calculate as there is no inherent monetary value associated with them. Instead, there are different ways to place value on the losses. One of the most common ways is the multiplier method, where the impact of the accident and injury is rated on a severity scale of 1 through 5, with 5 being the most severe. After adding up the total economic damages, the number will be multiplied by the chosen severity value, which equals the total non-economic damages.
For more information and to secure skilled legal counsel, reach out to an attorney at Shane Hall, Attorney at Law, PLLC today.
