In any personal injury claim one of the key components that makes up damages is the income that you have lost or you can expect to lose as a result of your injuries. It is important to note that past income is fairly easy to calculate; however, things get a little bit tricky when it comes to calculating expected future income losses. This is especially true when calculating lost earning capacity. This article will discuss estimating future income or future earnings capacity in a personal injury claim and how they are calculated.

Lost earning capacity is a “concept that is primarily concerned with the effect an injury may have on a person’s future rather than their past. One of the fundamental principles that has emerged in personal injury law is that a plaintiff may be entitled to future lost earning capacity even though the plaintiff may be entitled to past lost income”. The concept of lost earning capacity “recognizes that every individual has an inherent and/or acquired ability to earn money, i.e. the person has a certain ‘economic horizon’. When that person is injured and suffers a loss to their mental or physical capabilities, there is a corresponding decrease in his ability to earn in a future income period; this is, in essence, the claim for lost earning capacity”.

Lost earning capacity basically refers to the ability to make a living in either the job you had before you were injured or in a comparable one. In order to value lost future earnings in a personal injury case this usually requires coming up with a combination of financial documentation and the testimony of expert witnesses who are qualified to offer an opinion on your physical limitations and the potential impact such limitations will have on your earning ability.

One attorney stated that, “every case is different and there are too many variables to come up with a comprehensive list with respect to factors that affect a plaintiff’s lost future earnings in a personal injury case. However, there are a few common factors that will affect lost future earnings in any personal injury case” and these include the following:

A comprehensive assessment of your injuries as well as a timeline with respect to the prospects of a full recovery.
If full recovery is not anticipated or the injured person has long-term injuries, a realistic picture of the plaintiff’s capabilities and limitations related to employment must be painted once that individual reaches ‘maximum recovery’.
An analysis of the nature of your current employment duties and any prospective employment duties you are trained and qualified to carry out with respect to the limitations that resulted from your injuries. This includes the financial implications of different employment options.
A forecast of the income you could have reasonably expected to receive had you not been injured in contrast with a forecast of the income you can reasonably expect to receive after the injury.
Any promotion related to position, salary or other advancements that you could have reasonably expected to achieve.

As noted previously, lost earning capacity focuses on the future ability of the plaintiff to earn a living with respect to a job that they had before the injury. Because of the significant impact one’s injuries may have on their ability to earn a living, it is important that they discuss their case with one of the best attorneys in Anchorage Alaska for legal advice and representation.

About the company:
Crowson Law Group is a law firm of renowned professionals that focuses on personal injury matters. For a free case evaluation for a personal injury claim, contact Crowson Law Group for car accident Anchorage today .