Suffering a terrible accident on a Washington interstate, at work or at your home can leave you seriously injured. Insurance compensation is meant to assist you during recovery. After your injuries, you will need help paying for things like medical expenses, especially if you have lost income from missing time at work while you recover.
But what if your injury is severe enough to keep you out of work for months or years? Your injury could rob you of your future ability to earn a living for yourself and your family. You may not be able to afford the same life you had prior to your accident. This long-term or permanent loss of ability to return to work is known as Lost Earnings Capacity.
You may have lost the capability to do your job due to an accident caused by someone else’s negligence. If you are missing months of work and worry that your return date will never come, skilled personal injury attorneys at Hagens Berman may be able to help you recover.
For more than two decades, Hagens Berman has delivered exceptional results for our personal injury clients by obtaining impressive verdicts and settlements in personal injury litigation. We make sure victims receive the compensation they need to support their recovery and their families, especially when victims face extended time away from their jobs and experience lost earnings capacity.
LOST WAGES VS. LOST EARNING CAPACITY IN WASHINGTON STATE ACCIDENTS
Lost wages are a common addition to a personal injury insurance claim. When accident victims suffer a serious injury, they will likely miss time from work while healing, be it days, weeks or months of lost wages. The valuable time on the job and paychecks missed are calculated as lost wages damages. This lost money is often reimbursed by the insurance company representing the at-fault party responsible for the victim’s accident and represents a portion of recovery you could receive through your personal injury lawsuit.
Lost earning capacity goes beyond lost wages and considers the time away from work that victims may endure in the years to come. If their injuries do not heal on a quick schedule, or if the injuries are permanent or cause lifelong complications, the damages from missing work may extend far beyond the date of an insurance settlement or court judgment. The victim has lost the capacity to earn a living, perhaps for the rest of his or her life, and deserves compensation for this life altering event.
A claim of lost earning capacity cannot always be easily calculated. Lost earning capacity claims require estimates of a victim’s earning potential. However, it’s important that these figures are as accurate as possible. A claim of lost earning capacity will affect the quality of care an injury victim receives over the years as well as the lifestyle their family is able to afford and maintain.
CALCULATING LOST EARNING CAPACITY DAMAGES IN WASHINGTON ACCIDENTS
Estimating lost earnings is not an exact science. The calculation for an injury victim must take into account how much they will forfeit over a lifetime due to losing the ability to continue a job or career. An insurance company looking to limit the support they must pay out will likely underestimate a lost earning capacity figure. Insurance companies also attempt to omit important factors in the victim’s earning potential.
There are many details that should go into any calculation of a victim’s wage-earning potential. These factors go beyond simply multiplying the victim’s last paycheck by months or years:
- Yearly or hourly pay
- Potential overtime pay
- Annual cost of living raises
- Promotions and potential merit increases
- Commissions and bonuses
- Vacation and sick days
- Retirement fund contributions and pensions
HEALTH, AGE AND OTHER FACTORS IN LOST EARNINGS CAPACITY CASES
The injury victim’s physical condition and former lifestyle also enter into the equation when calculating lost earnings capacity and what someone could have earned were they still able to perform their job duties.
These and other factors will play a role in how much support insurance companies will be asked to provide:
- Claimant’s age in relation to retirement age
- Pre-accident health
- Physical demands of job duties
- Testimony from medical experts about the prognosis for healing
Insurance companies will attempt to use many of these factors to decrease the amount they could possibly have to pay the victim for lost earnings capacity.
Insurance companies fight to diminish each factor because providing fair support for wage-earners over the remainder of their careers can total in the millions of dollars, and insurance companies do not have your best interest in mind.
Compensation for lost earnings capacity totals skyrocket when a permanent disability is involved in an accident. Those responsible could be on the hook for supporting victims and their families for decades. The cost of weekly medical care, medical equipment and physical therapy only multiples the value of any claim.
In some cases, victims are able to transition to a new, less physically demanding career. However, insurance companies would still get called upon to provide money for career training, college tuition and other transitional costs to the injured.
PROTECTING THE LOST EARNINGS CAPACITY RIGHTS OF WASHINGTON PERSONAL INJURY VICTIMS
You go to work each day to provide a stable life and future for yourself and your family. That dedication and hard work can be a point of pride. Yet, the ability to earn a living may be taken from you in the blink of an eye when someone’s negligence causes a serious accident. Insurance companies for at-fault parties should provide fair compensation to support you through your entire recovery, no matter how long that takes.
Our legal team understands that personal injury cases and lawsuits can be intimidating and exhausting. Hagens Berman will help guide you through the details of your claim and listen to your perspective and desired outcome. We strive to work for your benefit with as little disturbance to your life as possible.
Contact the attorneys at Hagens Berman in Seattle for a free and confidential case evaluation. We are happy to answer any questions you have and stand ready to take immediate action if you choose our team to represent your case.
