Were you or someone you know injured in such a way that it has affected your ability to earn an income? If so, then you may be entitled to recover damages for your loss. This loss of earning potential is something that many victims underestimate or fail to fully understand, leaving them at risk of accepting insufficient compensation and ending up with long-term financial hardship.

The top personal injury lawyers can help you avoid this grave mistake and offer their assistance in claiming fair compensation for all your losses and damages.

What is Loss of Ability to Earn?

The loss of ability to earn can be described as a state in which an injured person is no longer able to earn as much as they had previously earned before the accident. The decrease in earning capacity may result from physical or mental impairment due to the injury, which can be temporary or permanent.

Effects of Loss Ability to Earn

1. Immediate Loss of Earnings

A serious injury, to a great extent, deprives one of income during recovery. Most victims have to take time off work for several weeks, months, or sometimes even years. This is psychologically devastating, as in most cases, especially if they are the breadwinners of the family.

They will be unable to deal with the mounting costs which include increasing medical bills, rehabilitation costs, and the cost of livelihood. Without savings or support, this phase is tough to negotiate. Most succumb to pressure and take loans or sell their assets to survive.

2. Long-Term Impact of Inability to Earn

One of the most significant yet commonly ignored impacts of an accident is the loss of future earning ability. Many times, after medical recovery, victims are unable to resume their previous employment because of limitations that are either cognitive or physical.

A construction worker with a back injury may no longer be able to lift heavy objects, while an office worker with a brain injury may have difficulty with memory or paying attention, limiting their ability to perform duties that they have done in the past.

The difference in pay should also be considered. For instance, consider a construction worker making $75,000 per year who is injured on the job and cannot return to work. He finds another job that pays him $40,000, thus losing $35,000 in earnings.

3. Career Disruption and Re-entering the Job Market

It can be traumatic to return to work. Some may leave due to physical problems, others because their skills are outdated. This break can feel disheartening for some, especially for those who’ve been working long time.

Returning to work after being away for some time or suffering from any injury is always difficult. Employers are usually skeptical about recruiting people with medical records, especially for jobs that are physically demanding or require too much mental stress. Competition from other applicants who have no such gaps or health problems further puts accident victims at a disadvantage.

Legal Compensation for Lost Earning Capacity

The loss of earning capacity can vastly affect one’s life. Victims focus on the immediate costs of treatment and neglect the loss of earnings a person will have to bear in the future.

In a personal injury case, determining the loss of earning capacity is paramount. Testimony from economists, vocational specialists, and medical professionals in measuring the injury’s impact on lifetime earnings is important. If this is not done, there is a risk of victims receiving low settlements for their losses.

Challenges in Proving Lost Earning Capacity

It is difficult to prove loss of earning capacity. The courts need adequate proof that the injury resulted in loss of ability to earn. The compensation takes into account the following things. 

• The age of the individual
• Type of employment
• Level of skill required
• Income before the injury

In general, younger victims have greater losses because of the time they’ll lose recovering from the injury. Those with a promising career may deserve higher compensation as the injury hindered their growth and earnings.

Taking Action After an Injury

Since proving the loss of earning ability is always complex, the victim must seek legal advice as soon as possible. You will need detailed records of how the injury affects your daily life and work. An experienced personal injury lawyer will be able to help one obtain full compensation, not only for immediate losses but also for one’s future earning potential.