Quantifying a personal injury claim is a bit of an art and a science. But one aspect of a family breadwinner’s case should never be overlooked.
Future earning capacity is the term used to describe what the accident victim would have earned over the course of a lifetime had they not suffered the injuries from the collision with an at-fault driver. Learn more below about why this claim is so important to include.
How is the amount calculated?
When determining loss of earning capacity, the accident victim’s age is important. Wage-earners in the prime of their lives, with decades of earnings ahead of them, face significant financial damage by having their earning power cut short.
Other factors that affect the amount of the personal injury claim include the victim’s education and skill set. Those who work in niche industries and highly educated earners like surgeons or pro athletes who can no longer perform their jobs face heavy losses.
But even those with little education who work as laborers can still include loss of earning capacity if they can no longer do such physical labor on the job.
Other considerations for future earnings
Most careers do not have static salaries, as people tend to get promoted from within and their earnings increase along with their advancement in the company. A skilled personal injury firm can sketch out a career/salary trajectory that fully addresses future earnings claims.
What causes lost earning capacity?
After a serious accident, the physical injuries victims suffer can be catastrophic and permanent. Even when they physically reach their maximum medical improvement (MMI), lingering post-traumatic stress disorder (PTSD) symptoms can make it impossible to ever return to gainful employment.
Don’t be shortsighted with your personal injury claim
It’s frustrating to wait for a claim to settle, and litigation can drag the process out even further. However tempting it might be to push to settle a claim quickly, it’s always helpful to know the true value of your personal injury case.