There are at least 300,000 new personal injury cases in the U.S. every year. Some data sources estimate this figure to be 500,000.
From these figures, it is estimated that car accidents account for 52% of personal injury cases, while 15% of cases relate to medical malpractice. Other reasons for personal injury lawsuits include product liability and even dog bites.
Economic damages form part and parcel of all personal injury cases. Most of the time, the plaintiff thinks only about expenses like lost wages and medical bills.
Unfortunately, some do not realize that the financial impact of a personal injury can extend far beyond these costs. It is the everyday expenses or unexpected costs that affect their financial stability and overall well-being.
Plaintiffs must understand just how hidden economic damages will affect their lives. This is the only way for them to get the compensation they deserve.
If you have been affected by an incident that led you to open a personal injury case, keep reading to discover how to include hidden economic damages in your claim.
Consider All Expenses Related to Your Experience
If you suffer a severe injury, it can disrupt more than just your health. Hidden economic damages can seriously impact your finances and standard of living.
For instance, if you cannot drive following an injury, you will have to pay for another mode of transport. This includes getting to and from doctor’s appointments or getting essential needs like groceries.
After seeing a doctor, you may need to pay for prescription and over-the-counter medication.
If your injury involves a fracture, you will likely pay for braces or crutches and physical therapy. While your personal injury case is in progress, all these expenses will have to be paid from your own pocket.
Additionally, if an injury limits your movement, you cannot handle household chores. This means you may need to hire someone to clean, cook, and potentially help look after your children. These costs will add up, creating a heavier financial burden.
Moreover, a severe injury will keep you from returning to work for a long time. Even if you can handle small tasks, you will likely work fewer hours, resulting in less income. A long-lasting injury may even prevent you from returning to the same job. This could result in you finding a new line of work with a lower salary.
In turn, this will impact your future earning capacity and ability to earn a living. This situation is especially tough on young individuals who do not necessarily have a backup plan in place.
Other Factors That Play a Role in Hidden Economic Damages
There are several other factors to consider. If you were studying at the time of your injury, you may have to pause your studies or would have to spend money to get accessible learning materials at home.
There is even a chance that you may have to modify your house. If your injuries are permanent and you are in a wheelchair, you would have to have ramps installed. Furthermore, you would also need to widen doorways, lower countertops, and create a wheelchair-accessible bathroom.
Your car may need an overhaul. You may need to add wheelchair-friendly modifications or buy a new and specific vehicle.
Lastly, these extra expenses will impact your current and retirement savings. If you can no longer save money, it will weaken your financial stability over the long term.
How to Document Hidden Costs
It is crucial to include hidden economic damages in your personal injury claim. You can only do this if you can prove each expense. This means you must keep track and records of everything you spend related to your injury. Save every receipt, bill, and invoice you get from your doctor, hospital, and physical therapist. Also, save all the receipts from over-the-counter and prescription medicines.
Get quotes and invoices from architects and builders if you need modifications to your home. Do the same with an auto repair company if you need to modify your car, and show the quotes to your lawyer. Keep track of all your transport costs.
At the same time, you must get a letter from your employer stating that you are getting paid less or not at all. This will serve as proof of lost income.
Keep a journal about how your injuries impact your daily life. Emphasize how the accident and resulting injuries restrict you from working, cleaning, studying, or going out.
How to Quantify Hidden Damages
In addition to keeping a record of expenses, you have to quantify the hidden damages. For instance, you can calculate how much it costs to hire someone to help you around the house compared to doing the work yourself.
You can ask an economist to help you apply the human capital approach to your calculations. This will help you estimate the present value of your lost future earning capacity. The economist will base this calculation on your income before the injury, age, education, and career experience.
Remember that it is difficult to add dollar value to hidden economic damages. However, you can prove the overall impact on your quality of life, which can help the outcome of your personal injury case.
The Goal of Including Hidden Damages
If your injuries happened due to an accident or incident that was not your fault, you should not have to suffer for it. The goal of a personal injury lawsuit is to help you pick up the pieces after such an incident and carry on with your life.
This is why you must include hidden economic damages in your claim. Otherwise, you will stay financially burdened due to someone else’s negligence for the rest of your life.
Getting the Compensation That You Deserve
Personal injuries change lives, both physically and financially. If this type of unfortunate event befalls you, it is crucial to understand all aspects of claiming economic damages. By keeping track of all your expenses and getting an economist and attorney to help you, you can secure the financial resources to help rebuild your life.
