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The challenges of estimating lost wages and earning potential

On Behalf of | Aug 15, 2024 | Personal Injury

Individuals with serious injuries, possibly caused by car crashes, may expect to receive appropriate financial compensation through insurance. However, the amount of coverage available is not necessarily a reflection of someone’s losses but rather the coverage carried by the party at fault for the incident.

Those injured by another party’s negligence or misconduct may want to take legal action. When there isn’t enough insurance coverage available, a personal injury or wrongful death lawsuit can be a viable option. Civil lawsuits require that the plaintiff request a specific amount of compensation by demonstrating their economic losses.

Medical expenses are one of the top concerns people have when initiating personal injury lawsuits. They may also worry about their lost earning potential and how the elimination or reduction of their income could negatively impact their families. Why is it often so difficult for people to accurately estimate their lost wages and lost earning potential?

Estimating long-term income growth

Most people move from one job to another every few years. Even those who want to continue working for the same company may seek out promotions or a transfer to a different department. Career mobility often leads to increased earning potential. Those who are too hurt to continue their careers lose out not just on their current wages but on the opportunity for increased compensation in the future. They need to consider what they may have earned in a decade if they had been able to continue their careers as planned.

Determining the true value of benefits

Workplace benefits contribute significantly to someone’s overall income and their standard of living. While they are technically not part of someone’s annual income, they can represent tens of thousands of dollars each year. Benefits may include paid leave and even employer-sponsored insurance coverage. Those benefits may not be available if someone has to end their career early or move to a lower-paid job.

Most people already struggling with job injuries are not in a position to do a deep dive into the economics of their future careers and the disruption their injuries generated. Partnering with a personal injury legal team can help an injured person or a surviving family member establish what to seek in a lawsuit. Plaintiffs who accurately quantify the economic impact of their injuries are in the best position possible to seek justice from the party responsible.

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