collaborative post | There seems to be a decent chunk of people in the US who are careless. There are numbers to prove the previous statement. In 2021, there were 224,935 preventable injury-related deaths. Even worse is the fact that over 62 million people sustained injuries that could have been entirely prevented. The second number is for 2021 as well.

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These staggering numbers are proof that the increase in accidents doesn’t seem to be having any effect on the population. People still seem to be moving around, throwing caution to the wind.

If you suffered an injury due to someone else’s negligence, you shouldn’t hold back. You should take the action necessary to bring the at-fault party to justice. Consult a local personal injury law firm and find out how you can pursue the at-fault party legally.

Filing a personal injury case has a multitude of benefits. One of them is the compensation you receive for the loss of earning capacity.

Is the Loss of Earning Capacity the Same as the Loss of Income?

Loss of earning capacity isn’t the same as loss of income.

Loss of income compensates the amount of money you lost when you were recovering. This can be in the form of hospitalization or resting at home.

For example, assume Ben, a roofer, had to miss work because of a fractured leg. To prove loss of income, Ben has to submit:

  • Proof of employment
  • Pay stubs or wage slips from the employer
  • Bank statements or tax forms
  • Doctor’s statement verifying Ben’s injuries and duration of recovery

The submission of the abovementioned documents will help Ben prove his loss of income.

What is Loss of Earning Capacity?

Unlike loss of income, loss of earning capacity compensates the victim for their inability to work or perform work-related duties with the same proficiency as before. Loss of earning capacity is also known as loss of future income.

Take the Ben’s case mentioned above. Due to his fractured leg, Ben will have trouble climbing to the roof and standing for long hours. This is something expected in his physically demanding work. The inability to perform in his job role as before makes Ben eligible for loss of earning capacity.

How to Calculate the Loss of Earning Capacity

Different factors come into play when calculating the loss of earning capacity. This can be difficult without the assistance of a lawyer. This is why it is recommended to hire an experienced personal injury lawyer, not just to calculate loss of earnings, but other types of losses as well.

Your lawyer will consider the following information when calculating the loss of earning capacity:

  • Pre-accident earnings
  • Current work experience
  • Expected career path
  • Number of promotions or raises received
  • Current skill level and education
  • Life expectancy (Based on the victim’s age and pre-accident health)
  • Estimated value of the victim’s skills and experience in their industry
  • Possible promotions or raises
  • The victim’s ability to perform other roles in the same industry

The above factors are applicable when the victim has regular employment. However, different factors are considered if the victim is self-employed. They are mentioned below:

  • The victim’s level of participation before and after the injury
  • The size of the business
  • The profits lost when the victim was injured
  • Tax records and other relevant information to show the victim’s earnings

Proving Loss of Earning Capacity

Although a ton of factors go into calculating the loss of earning capacity, proving it is comparatively easy. The victim has to submit medical records that validate their injuries and the statement that they cannot function at pre-accident levels. In addition to that, an expert witness would come in pretty handy. Expert witnesses will help prove the seriousness of the victim’s injuries and the impact they will have on the victim’s career.


Victims of accidents often undergo a series of changes. The intensity of the changes depends on the seriousness of the injuries. These changes have the ability to completely change a person’s life.

You need the help of a lawyer to prove the impact of injuries on your day-to-day life. They’ll also assist in negotiating the right compensation for your losses and damages.

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