When an individual is injured due to another party’s negligence or reckless behavior, they may be entitled to compensation through a personal injury claim or lawsuit. This compensation can be categorized into two main forms: economic damages and non-economic damages. When you are pursuing compensation for your injuries and losses, understanding the difference between economic and non-economic damages is essential. For more information and skilled legal representation, reach out to an experienced New York injury lawyer today.
What Are Economic Damages?
Economic damages are a form of compensation designed to repay victims for financial losses that resulted from their injury. These are real, quantifiable losses that cost the victim money. The purpose of these damages is to reimburse the victim for the money that they had to pay, either out of pocket or through insurance coverage.
These damages are based on actual and future costs associated with the injury and other damages. They can be easily calculated through documentation like receipts, bills, pay stubs, and the help of expert testimony. Examples of economic damages include:
- Current and future medical expenses like hospital stays, surgeries, medications, physical therapy, etc.
- A loss of income from taking time off work for recovery or from a diminished earning capacity
- The costs to repair or replace property damage
- The costs to make modifications to the home or vehicle to accommodate a new disability
- The costs of hiring household assistance
What Are Non-Economic Damages?
Non-economic damages are a form of compensation that is awarded for losses that do not have a clear monetary value. Financial losses are not the only type sustained in the aftermath of an accident and injury. Victims may suffer psychological and emotional consequences that, while costing no money, cause hardship in other ways.
Non-economic damages act as a way to compensate victims for intangible, non-monetary losses that they experience as a result of an injury. Examples of these damages include:
- Physical pain and suffering
- Emotional distress
- Loss of enjoyment of life
- Loss of consortium
- Disfigurement
- Compensating an individual for these types of losses ensures that the legal system recognizes the impact that an accident can have on an individual’s overall quality of life and well-being.
What’s the Difference Between Economic and Non-Economic Damages?
So, the main difference between the two is that one compensates victims for actual financial losses sustained in an accident, and the other compensates victims for emotional and other losses that may not have cost them any money but did cause hardship or suffering.
Non-economic damages are subjective and harder to quantify, but they are just as important as economic damages, and both are necessary to fully compensate a victim and ensure they do not suffer financially as a result of the accident.
It is important that all of your damages are addressed and compensated after being injured in an accident. For more information and to secure legal representation, reach out to an experienced attorney today.
