Close Menu

What Does Lost Income and Loss of Earning Capacity Mean for You?

Loss of EarningWhen you are injured in an accident due to someone else’s negligence, you may suffer in many different ways. In addition to possibly receiving compensation for medical expenses, you may also be entitled to receive compensation for your loss of income and/or your loss of earning capacity. These two claims are separate and have different legal definitions.

What is Loss of Income?

Loss of Income” refers to wages or other benefits that are actually lost due to your inability to work because of your injuries. If you miss any work due to the injuries you suffered in an accident caused by someone’s negligence, then may be entitled to receive compensation for the wages and benefits you lost as a result.

But, you must be able to prove this…

Loss of income is relatively easy to prove if you and your employer document the time you were actually off work due to your injuries. For example, if you normally work overtime, then you should also calculate the average amount of overtime you lost. However, this should be a part of your case should you decide to file a lawsuit.

What Is Lost Earning Capacity?

Lost Earning Capacity” is a bit different from “loss of income”. Lost earning capacity refers to a decrease in a person’s ability to earn income. For example, if your injuries impair you from working in the future to the same degree you are working now, then you may be entitled to compensation for your loss of earning capacity.

Lost earning capacity is difficult to calculate into an exact amount. In order to determine your earning capacity, you need to consider the following factors:

  • A review of your work profile, including your skills and experience

  • A documented consultation with a physician or health care provider to determine if your injury would affect your future work performance

  • A review of current market values and wage rates to determine how much income you stand to lose in the future

Contact a Skilled Personal Injury Attorney Today

While lost income is relatively easy to calculate and prove, proving a loss of earning capacity is a different story. If you have suffered a personal injury that has affected your work status in any way, then it is critical that you contact a personal injury attorney as soon as possible to determine if you should include these claims when bringing a personal injury lawsuit.

Also Read :

Related Posts:

  1. 4 Urgent Records You Need After a Car Accident in Daytona Beach
  2. What Damages Can I Recover after a Car Accident?
  3. How to Get a Personal Injury Lawsuit Started
  4. [Infographic] What to Remember After a Motorcycle Accident in Florida