Common Mistakes to Avoid When Claiming Economic Damages

Claiming economic damages can be a complex process with potential pitfalls that may undermine the compensation you deserve. Avoiding common mistakes during the claim process ensures a fair and comprehensive recovery.

Before diving into common errors, it is crucial to understand the types of economic damages typically claimed. These damages often include past and future medical costs, lost income (including wages and benefits), costs of rehabilitation, and expenses related to property damage.

Accurately documenting and calculating these losses is vital to substantiate your claim and avoid disputes with insurance companies or opposing parties.

Below are some common mistakes to avoid when claiming economic damages.

1. Failing to Document Every Expense

Not keeping thorough records of all injury-related expenses is one of the most frequent mistakes. Compensation covers less visible expenditures like prescription drugs, home care, missed pay from time off work, and travel to doctor’s visits, in addition to more evident costs like hospital bills. You could lose a lot of money if your claim is denied for lack of thorough proof, such as medical bills, pay stubs, and receipts.

2. Underestimating the Value of Your Claim

Many claimants ignore the long-term financial effects of their injury and instead concentrate on the current costs. Future medical care, continuous rehabilitation, and reduced living ability are examples of economic damages. If you undervalue these, you may accept settlements short of making up all your losses. Consulting with legal counsel can help ensure all potential damages are considered and properly valued.

3. Providing Recorded Statements Without Legal Advice

Insurance adjusters frequently ask claimants to provide taped statements. Without appropriate advice, these comments may unintentionally include confessions of partial fault or discrepancies that insurers may utilize to limit or reject claims. To prevent undermining your case, speaking with a lawyer before making any recorded comments is best.

4. Settling Too Quickly

Claimants may face pressure from insurance firms to accept early settlements, frequently understating the actual amount of economic damages. You may become financially exposed to future costs if you settle before finishing medical treatment or fully comprehending the long-term effects of an injury. Before accepting any settlement offers, patience and a thorough evaluation of damages are essential.

5. Ignoring Saved Expenses and Mitigation

Ignoring saved costs or expenses that the claimant no longer incurs due to the injury or incident is a common mistake when calculating damages. For instance, if a business loses sales volume, the expenses saved by not generating those sales should be considered to avoid inflating damages.

Similarly, as failing to do so may limit recoverable damages, claimants must show that they have taken steps to lessen damages, such as obtaining medical attention or returning to work when feasible.

6. Not Gathering Sufficient Evidence

Strong evidence is the backbone of any economic damages claim. Failing to collect essential documentation such as police reports, witness statements, photographs of the accident scene, and medical records can severely weaken your case. Comprehensive evidence supports the causal link between the injury and the financial losses claimed, making your case more credible and harder to dispute.

7. Neglecting to Account for Taxes and Interest

Economic damages calculations must consider whether losses are measured before or after taxes, as this affects the total amount claimed. There may also be a sizable prejudgment interest on losses sustained before the trial. Undercompensation may result from ignoring these issues.

Sum Up

Claiming economic damages necessitates thorough documentation, close attention to detail, and a clear comprehension of the entire extent of losses. A fair settlement can be obtained far more easily if errors like inadequate documentation, early settlement, and underestimating damages are avoided. Hiring a legal professional to help assess and present your interests further protects your claim.