Difference Between Economic vs. Non-Economic Damages

When a person suffers an injury in a car accident, a slip-and-fall accident, or any serious injury caused by another party’s negligence, it often has ripple effects throughout all aspects of their life. A serious injury causes more than physical pain, it also results in escalating medical debt at the same time that the injury victim may be unable to return to work at their previous capacity—or unable to return at all. Some catastrophic injuries may have life-altering adverse impacts on the injury victim’s quality of life. 

The temporary and permanent consequences of an injury caused by someone else’s fault become the injury victim’s “damages” in a compensation claim. The civil courts separate most personal injury damages into two categories: economic and non-economic damages.

Economic Damages In a Personal Injury Claim

After an accident, economic damages add up quickly. An injury victim’s economic damages are the tangible consequences of their injury that are relatively easy to calculate using evidence such as medical bills, receipts for out-of-pocket expenses, and employer statements showing missed workdays. Common economic damages recovered in personal injury claims include the following:

• Reimbursement for the medical expenses the injury victim has already paid, such as an emergency room bill, the cost of ambulance service, and a hospital bill
• Compensation for future medical expenses related to the injury, such as funds for physical therapy, follow-up appointments, scheduled surgeries, or other medical procedures
• Compensation for associated expenses such as prescription medications, adaptive equipment, transportation costs to see a specialist, or home health care if needed
• Compensation for lost wages
• Compensation for future income loss for recovery time after scheduled procedures or for occupational therapy until the injury victim’s doctor clears them to return to work
• Compensation for diminished future earning capacity if the injury results in disability that prevents a return to the workforce

An injury victim’s attorney carefully reviews their medical expenses and consults with medical experts to estimate future expenses related to the injury to ensure that their client seeks the maximum compensation available to them in their injury claim for economic damages.

What Are Non-Economic Damages?

An injury victim’s non-economic damages are intangible and more difficult to assign a monetary amount, but they are usually the most distressing or devastating aspect of a serious injury. Common non-economic damages in personal injury claims include:

• Compensation for pain and suffering, including the pain the injury victim has already endured and an amount per day until a medical expert anticipates the injury victim will reach their maximum medical improvement
• Compensation for catastrophic injury damages such as the loss of vision or hearing, traumatic limb loss, paralysis, the loss of an organ, disfigurement, or severe scarring
• Compensation for emotional damages such as PTSD, diminished quality of life, loss of enjoyment of life, anxiety, or depression

Although it’s challenging to assign a monetary amount to intangible damages like pain, suffering, and PTSD, the civil court’s only remedy for these damages is to award financial compensation.

Obtaining a Settlement or Going to Court for Economic and Non-Economic Damages

The vast majority of personal injury claims—as many as 93%—are resolved with a settlement from the at-fault party’s insurance, such as auto insurance after a car accident, or property liability insurance after a slip-and-fall injury. Only when an insurance company disputes aspects of a claim or denies their policyholder’s liability does the case go to court in a lawsuit. Working with a personal injury lawyer in Atlanta to take a case to court can typically take longer to resolve but often ends in a large jury award for damages because juries typically sympathize with injury victims.