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This content is for informational purposes only and is not intended to provide legal advice.
When you are involved in an accident, one of the most common consequences is a loss of earnings. This term refers to the money the victim could have earned if they would have not been injured.
Losing your income is particularly devastating as the accident can cause long-lasting financial fallout. If you are planning to sue the parties responsible for the accident, you need to know how to ask for compensation for the loss of earnings. A specialized lawyer can offer helpful legal guidance on how to proceed tailored to your situation.
What Is Loss of Earnings?
Loss of earnings refers to the money the victim would have earned if it were not for the defendant’s actions. Loss of income can include lost wages, business income, or other money that the plaintiff lost as a result of the accident.
Plaintiffs can sue for lost current income and future earnings. For example, if you have been unable to work for a month due to your accident-related injuries, you can request the court order the defendant to pay you a month’s worth of wages.
In general, most people can sue for:
- Lost wages
- Lost commission
- Lost business income
- Lost bonuses
- Lost future income
Eligibility to Claim Lost Income
The loss of income has to be a direct cause of the accident. Compensation will not be awarded for a condition that existed before the accident. For example, if you were fired from your job and were involved in a crash after driving out of the parking lot, you can’t sue that driver for lost income.
In addition, you will have to show that the amount you are asking for is in line with your current or expected earnings. If you were earning $1,000 a week and were out of work for a month, the court is unlikely to award you $25,000 in lost income.
The income does not have to occur at once for the court to award it to the plaintiff. If you lost 100 days of work over a year, you can still sue for those lost 100 days.
You can also sue for lost potential wages. If you were set to close a deal with a client worth $500,000 and you are unable to take on the job due to your injuries, you can sue for the income you would have earned if it weren’t for the accident.
You will have to prove that your injuries were a direct result of the accident. You can do this through official records, like:
- Medical files
- X-rays
- Physical therapy documents
- Mental health treatment
Gather any document that is connected to your accident and hand over a copy to your attorney. In addition, if you have been rendered disabled by the Social Security Administration, you can use the records as proof of your disability.
Lost Earning Capacity
Lost earning capacity refers to the income you would have earned in the future had you not been injured. It is based on the income you have not earned yet. This is a bit trickier to prove, but if you and your attorney are successful, you can get compensation for your future income loss.
Future income loss is determined by reviewing the plaintiffs:
- Work history
- Skills
- Past earnings
- Resources
- Talents
The court may ask for work records, resumes, online profiles, and skills assessments. Loss of earnings capacity assessments can help to determine how much money you stand to lose as a result of the accident.
The Bottom Line
If you have been hurt and can’t work, you will need compensation for the lost income and help you recover your financial life. Personal injury attorneys can help you explain to the court what you have lost since the accident.
Facing this task on your own can be difficult. Proving lost income can be challenging, even for seasoned professionals. Therefore, take your time to find the best legal assistant for your case.
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