Refers to the person's reduced ability to earn money in the future. Victims who recover compensation for this loss have often suffered serious, permanent, life-changing injuries.
Loss of earning capacity is a significant component of personal injury claims, particularly when the injuries sustained are severe and have long-term impacts. The following examples and case studies illustrate how loss of earning capacity is addressed in various legal contexts:
While individual cases vary widely, the principle remains that loss of earning capacity damages are intended to compensate for future income the plaintiff can no longer earn because of their injuries:
For more detailed information, see our related Torts terms: