The Difference Between Economic and Non-Economic Damages

When you’ve been injured in an accident, you may be entitled to compensation for your losses. This compensation is typically divided into two categories: economic and non-economic damages. It’s important to understand the difference between the two and how to calculate each type of damage in order to maximize your compensation.

What Are Economic Damages?

Economic damages are also known as “special damages.” These are tangible losses that can be calculated with a specific dollar amount. Examples of economic damages include medical bills, lost wages, and property damage.

Medical bills are the most common type of economic damage. This includes the cost of medical treatment, such as doctor’s visits, hospital stays, and prescription medications. It also includes the cost of any future medical treatment you may need as a result of your injury.

Lost wages are another type of economic damage. This includes any wages you lost due to missing work because of your injury. It also includes any wages you may lose in the future due to your injury.

Property damage is the third type of economic damage. This includes the cost of repairing or replacing any property that was damaged in the accident.

What Are Non-Economic Damages?

Non-economic damages are also known as “general damages.” These are intangible losses that cannot be calculated with a specific dollar amount. Examples of non-economic damages include pain and suffering, emotional distress, and loss of enjoyment of life.

Pain and suffering is the most common type of non-economic damage. This includes any physical pain or discomfort you experienced as a result of your injury. It also includes any mental anguish or emotional distress you may have experienced.

Emotional distress is another type of non-economic damage. This includes any mental anguish or emotional distress you experienced as a result of your injury. This could include anxiety, depression, or fear.

Loss of enjoyment of life is the third type of non-economic damage. This includes any activities or hobbies you can no longer enjoy due to your injury. It also includes any activities or hobbies you may not be able to enjoy in the future due to your injury.

How Are Economic and Non-Economic Damages Calculated?

Economic damages are typically calculated by adding up all of your medical bills, lost wages, and property damage. This will give you a total dollar amount for your economic damages.

Non-economic damages are more difficult to calculate. There is no set formula for calculating non-economic damages. Instead, it is up to the court to decide what amount of compensation is fair and reasonable.

In some cases, the court may use a “multiplier” to calculate non-economic damages. This is a number that is multiplied by your economic damages to determine an amount for your non-economic damages. For example, if your economic damages are $10,000 and the court uses a multiplier of 2, your non-economic damages would be $20,000.

How Can I Maximize My Compensation?

The best way to maximize your compensation is to make sure you are properly documenting all of your economic and non-economic damages. This includes keeping track of all of your medical bills, lost wages, and property damage. It also includes keeping track of any pain and suffering, emotional distress, or loss of enjoyment of life you have experienced as a result of your injury.

It is also important to make sure you are working with an experienced personal injury attorney. An experienced attorney can help you calculate your economic and non-economic damages and ensure you are getting the maximum amount of compensation you are entitled to.

Conclusion

Understanding the difference between economic and non-economic damages is essential for maximizing your compensation in a personal injury lawsuit. Economic damages are tangible losses that can be calculated with a specific dollar amount. Non-economic damages are intangible losses that cannot be calculated with a specific dollar amount. It is important to document all of your economic and non-economic damages and to work with an experienced personal injury attorney in order to maximize your compensation.