Every individual who has ever been involved in an accident incurs some type of financial loss. When they’re facing these losses, these individuals could be confused as to the next action to take.
One way to deal with them is by filing a personal injury claim. This allows the victim to recover two types of losses, namely economic losses and non-economic losses.
The types of losses you can claim as economic damages span from medical bills to out-of-pocket expenses. The following sections talk about this type of loss in detail.
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What is Considered Economic Loss?
When we talk about economic loss in a legal sense, it’s quite different from how it’s typically understood in business. Economic loss, legally speaking, refers to the actual, measurable financial impacts caused by someone else’s actions.
This isn’t about vague financial harm or potential income one could have earned. It’s about real, tangible expenses and losses that are directly tied to an incident, like a car accident or personal injury.
Now, notice the emphasis on direct financial impact. In legal terms, economic losses are all about what can be concretely documented and directly linked to the incident in question.
That’s why you won’t see things like pain and suffering, mental distress, or loss of enjoyment of life categorized as economic losses.
Even though these are very real effects of an accident, they fall under non-economic damages because they don’t come with receipts or measurable financial impacts in the way that repair bills or lost wages do.
What are the Economic Losses An Accident Victim Will Incur?
Here are the most common types of economic losses that an accident victim will incur. These losses will most likely have to be sorted out of pocket if they do not get compensation.
1. Medical Bills
Funding medical bills is one of the economic losses a victim of an accident usually incurs. Usually, the first thought that springs into the mind of every accident victim is the financial crisis of getting a medical checkup.
The medical bills associated with the accident may vary depending on the severity. Minor accidents may lead to lower medical bills, while the medical expenses for severe ones would go through the roof.
2. Property Repairs
Apart from sorting medical bills, the victim of an accident can incur property damage. The most common losses that come under this category include:
- Vehicle damage
- Damage to houses, fences, and other similar elements
- Jewelry
3. Loss of Employment
If the victim sustains a severe injury, they may be forced to take complete rest. The duration for recovery can range from a few weeks to a few months.
During this recovery period, the victim may lose their job. The financial repercussions of losing the job or switching to a new field are considered economic losses.
4. Lost Wages
This is closely related to the previous loss.
If the victim isn’t working, whether due to recovery or loss of employment, they tend to lose the wage, salary, or income they’re expected to receive. This will be considered under economic losses.
5. Out-of-Pocket Expenses
There are instances where the victim urgently requires the services of a doctor. At this point, the victim funds the medical fees from their “pocket,” which turns out to be an economic loss.
6. Burial/Funeral Logistics and Funding
It is not uncommon to witness some cases where the victim of an accident succumbs to their injuries. Here, the estate/survivors of the victim is burdened with the task of arranging burial preparations for the deceased. The court, in this instance, can order the accused or wrongdoer to handle funeral expenses.
Final Remarks
You just read about the various economic losses an accident victim will have to go through. These losses can increase depending on the severity of the accident.
It’s recommended to get in touch with an experienced legal professional who will help you get fair compensation for your losses.
