Posted on Monday, July 8th, 2024 at 8:32 pm
An injury accident can profoundly impact your health and physical well-being. Whether you broke your arm, suffered a severe concussion, or endured a significant spinal injury, the effects of an accident may extend far beyond the physical injuries themselves. If your injuries limit your ability to work, you will suddenly face a difficult financial situation. How are you supposed to support yourself and your family after loss of earning capacity?
A loss of earning capacity can be one of the most significant losses you’ll face following an injury accident. Fortunately, you could be owed compensation for this loss—and a personal injury attorney in Sandy, UT, can file a claim on your behalf to seek the financial relief you need to move forward.
What Is Loss of Earning Capacity?
Loss of earning capacity refers to the reduction in one’s ability to earn income as a result of an accident or injury. Unlike lost wages, which only account for the earnings one lost during the recovery period, loss of earning capacity considers the long-term impact on one’s ability to generate income. This concept is particularly important if one’s injuries have a lasting effect on one’s career prospects and potential earnings.
This form of compensation acknowledges an injury’s ongoing and future financial implications.For example, suppose you were injured in a way that prevents you from returning to your previous job or limits your ability to advance in your career. In this case, you may experience a substantial reduction in your earning potential. This could be due to physical limitations, additional training needs, or a complete career change.
In other words, if your injuries have affected your career arc, a fair settlement should reflect not just your immediate financial losses but also the long-term impact of your injuries on your livelihood. Loss of earning capacity aims to cover the gap between what you could have earned had the accident not occurred and what you can earn moving forward.
How to Calculate Loss of Earnings in Injury Cases
Calculating loss of earning capacity involves several steps. First, your personal injury attorney will consider your pre-accident income, including salary, bonuses, and other benefits. They’ll assess the impact of the injury on your ability to perform your previous job. Then, they will evaluate any limitations on future employment opportunities. Your lawyer will also factor your age, educational background, and career potential into their calculations.
Additionally, your attorney will consider the impact of the injury on your ability to pursue career advancement or changes. In many cases, personal injury lawyers will turn to vocational and economic specialists for additional insight. These professionals can provide a detailed analysis of how your injury affects your earning potential.
By integrating all these factors into their considerations, your attorney will aim to provide a comprehensive estimate of your financial losses due to diminished earning capacity.
What Evidence Can Help You Seek Compensation for Reduced Earning Potential After Accidents?
Attorneys rely on various evidence to build a strong personal injury case when pursuing compensation for reduced earning capacity. This evidence shows your loss of income and helps your lawyer calculate your financial losses. Key types of evidence include:
- Medical Records – Detailed medical records of your injury, treatment, and prognosis. This demonstrates the severity and long-term effects of your condition
- Employment Records – Items like pay stubs, employment contracts, and performance reviews. This outlines your pre-accident earnings and job responsibilities
- Vocational Expert Testimony – Insights from vocational experts who can assess how the injury affects your ability to work. They will provide opinions on potential career changes or limitations
- Educational and Training Records – Information about your qualifications and any additional training the injury requires. It can help estimate changes in your earning potential
- Economic Impact Analysis – Reports from financial experts who calculate loss of earnings. This is based on current and future job prospects
How a Sandy, UT, Personal Injury Lawyer Will Pursue Compensation for Your Lost Earnings
Your personal injury lawyer will endeavor to use this evidence to build a strong claim for lost earning capacity. They will turn it into an argument about how your injury impacts your financial future. By gathering medical records, employment history, and vocational expert opinions, your attorney will comprehensively assess how your injury affects your ability to work and earn.
Your lawyer will integrate this information to project your loss of future earning potential. They will also demonstrate the financial gap caused by your reduced earning capacity. They’ll work with economic experts to quantify these losses and prepare a detailed compensation claim. Then, they’ll present this claim to the at-fault party’s insurer and use it as a negotiation springboard. Most successful injury claims result in a negotiated settlement, but if the other party fights against an agreement or attempts to deflect responsibility, your lawyer may file a lawsuit and advocate for the compensation you deserve in court.
One of the benefits of hiring an experienced personal injury lawyer is that they secure a fair settlement or judgment that reflects the full extent of your financial losses—including many that you have not actually suffered yet. By meticulously presenting how the injury has altered your career trajectory and earnings, your lawyer will push for compensation that covers your livelihood’s immediate and long-term impacts.
Contact a Personal Injury Attorney Today at London Harker Injury Law
The period following an accident can be stressful and confusing. It can be difficult to know what comes next, and if the accident affected your ability to earn a living, you may be very worried about your future. The attorneys at London Harker Injury Law understand what you’re going through. That’s why our firm is prepared to help you and fight for the compensation you need and deserve. Contact us today at 77CARCRASH for a free consultation to discuss your case. We’ll review your legal options and tell you how we’ll pursue compensation for your loss of earning capacity, medical expenses, and other losses through a personal injury claim.
