Those seriously hurt by others due to negligence or misconduct may have the option of taking legal action. Personal injury lawsuits can help people cover their expenses when the party at fault for their injuries lacks insurance or has inadequate insurance coverage.
Unlike an insurance claim, which can slowly increase as new invoices and bills accumulate, personal injury lawsuits require that people request a fixed amount of compensation. Those preparing for a personal injury lawsuit need to be aware of the extent of their economic losses if they hope to hold the party at fault accountable. Vehicle repairs and medical bills come with invoices that allow people to request the exact amount they have lost. Injuries that affect earning potential can be much more difficult to properly value.
How can people calculate their lost wages after sustaining a significant injury?
By looking at the big picture
Oversimplifying wage calculations is a common mistake during personal injury lawsuits. People simply seek their current wages for a specific number of years. That approach often leads to inadequate compensation.
Most professionals do not experience stagnant wages for life. They may move to new jobs with different companies, pursue internal promotions or receive raises. Even small regular wage increases for cost-of-living adjustments can add up to a substantially higher earning potential over multiple years.
Those facing an inability to work because of an injury or reduced earning potential because of their medical challenges may need to consider how their wages may have increased over time and what positions they may have eventually acquired if they could continue developing their career as they had previously planned. The wages they earned at the time of their injury could be far lower than what they may have earned by the time they were ready to retire.
Workers also have to consider the entirety of their compensation package, including employer benefits. Paid leave, health insurance, disability policies and other benefits can contribute substantially to the total economic value of a worker’s career. The injured person may also have to consider the family members who may have received benefits and may now have to obtain them elsewhere at a much higher cost.
For many people, creating an accurate estimate of lost income and earning potential can be a daunting prospect. Partnering with support when pursuing a personal injury lawsuit can make it easier for injured people to understand their rights and request an appropriate amount of compensation. Those who have assistance calculating their lost wages are less likely than the average person to underestimate the economic impact a serious injury might inspire.