Roman Austin Personal Injury Lawyers | November 8, 2024 | Personal Injury
Loss of income and loss of potential earnings are two of several components of the economic damages that are available to someone who lost income, or who anticipates losing income, because of a personal injury caused by someone else. Loss of income is easy to calculate under many (but not all) circumstances. Loss of earning potential is typically more difficult to calculate.
Maximum Medical Improvement
Maximum medical improvement (MMI) is the point in your recovery, certified by your doctor, where you are unlikely to improve any further. Hopefully, that means a full recovery. If it does, or if your doctor expects it to, you should wait until you reach MMI before you calculate your medical expenses and lost income. The reason should be obvious—until you reach MMI, you can’t be sure of the exact amount of your loss of income.
In some cases, MMI means permanent disability. If you suffer a permanent disability, it might impact your ability to earn a living in ways that you probably won’t be able to calculate precisely even after you reach MMI. At this point, you might need to hire one or more expert witnesses to help you calculate your loss of earning potential.
Loss of Income
The concept is simple–how much money did you lose from lost work time from the moment of the accident until you reached MMI? That’s your loss of income. Although the concept is simple, the details can get complicated depending on how you earn your money.
Wage Earners
If you’re a wage earner, it’s fairly simple–multiply the number of work hours you missed by the amount of money you make per hour. 55 work hours times $20 per hour is $1,100, for example. Things can get more complicated if you missed any overtime or holiday work.
Salaried Employees
Suppose you make $5,000 per month, and you average 25 days a month at work. That’s $200 per day. If you missed 11 work days, it amounts to $2,200. The trick is to calculate your average daily pay in a reasonable manner.
Freelancers, Entrepreneurs, and People Working on Commission
The calculation process can get difficult for people whose income is inherently unstable. You might need to average out an entire year’s earnings to get an average daily rate. What’s most important is to use a rational method of calculation that is favorable to you. You might need documentation, such as tax returns, business receipts, etc., to back up your claims.
Paid Leave
Treat paid leave days that you used up because of your injuries as missed days of work, and calculate accordingly. The reason for this is that paid leave, whether sick days or vacation time, is a valuable resource that you sacrificed because of your injury. You deserve compensation for that.
Loss of Earning Potential
While loss of income looks to the past, loss of earning potential looks to the future. The key question is how much money you are likely to lose as a consequence of your injuries between the date of your accident and the date that you would have retired if the accident had never happened (65 for most people). You might need expert witnesses such as:
- A rehabilitation specialist,
- An economist, or
- A medical expert.
Make your estimate as precise as possible using the best available evidence.
Settlement
Your case probably won’t go to trial, and it might never see the inside of a courtroom. Instead, you’ll probably end up with an out-of-court settlement. That could save you a lot of time and money compared to a trial. However, you only get one shot at compensation if you settle.
Imagine that you ask for $200,000 in loss of earning potential when you really need $350,00. Now, imagine running out of money a few years from now. By then, it will be too late to come back and ask for more. You’ll have to make do with whatever you have. That is why it is critical to get it right the first time.
An Experienced Clearwater Personal Injury Attorney Can Make All the Difference
Insurance companies pay out most personal injury claims. Insurance adjusters just love people who represent themselves instead of hiring a lawyer, and not for reasons that should encourage you. You might be able to handle a small claim on your own. Nevertheless, you’ll need an experienced Clearwater, FL, personal injury lawyer to get a fair shake on any claim of substantial value. Contact Roman Austin Personal Injury Lawyers today to schedule a free consultation.
Contact the Clearwater Personal Injury Law Firm of Roman Austin Personal Injury Lawyers for Help Today
For more information, please contact the legal team of Roman Austin Personal Injury Lawyers for a free initial consultation with a personal injury lawyer in Clearwater. We have convenient locations in Florida: St. Petersburg, Safety Harbor, Clearwater, New Port Richey, and Tampa.
We serve throughout Pinellas County, Hillsborough County, Pasco County, and its surrounding areas:
Roman Austin Personal Injury Lawyers – Clearwater Office
1811 N. Belcher Road, Suite I-1
Clearwater, FL 33765
(727) 787-2500
Roman Austin Personal Injury Lawyers – Congress Ave Office
2360 Congress Avenue
Clearwater, FL 33763
(727) 591-5610
Roman Austin Personal Injury Lawyers – Tampa Office
6601 Memorial Hwy Suite 202
Tampa, FL 33615
(813) 686-7588
Roman Austin Personal Injury Lawyers – New Port Richey Office
2515 Seven Springs Blvd.
New Port Richey, FL, 34655
(727) 815-8442
Roman Austin Personal Injury Lawyers – St. Petersburg Law Office
840 Beach Dr NE Suite 202
St. Petersburg, FL 33701
(727) 787-2500
Roman Austin Personal Injury Lawyers – Safety Harbor Law Office
202 9th Ave S Suite A-2
Safety Harbor, FL 34695
(727) 787-2500