February 19, 2024

How Do Car Accident Attorneys Establish Loss of Earning Capacity?


senior male driver with whiplash injury standing by damaged car after traffic accident reporting incident to insurance company using mobile phone

Besides the physical injuries you might endure, a severe car accident can bring financial hardship.  If someone else’s negligence caused the crash, you may be entitled to compensation for the wages you’ve lost – and for the income you are unable to make in the future because of the harm you suffered. This is known as a loss of earning capacity.

What is Loss of Earning Capacity?

Loss of earning capacity refers to the financial shortfall resulting from diminished career prospects following an accident. Unlike lost wages, which represent what you would’ve made had you not been injured, loss of earning capacity reflects what you can no longer make. Here are some examples:

  • New Disability
  • Missed Promotions
  • Reduced Work Hours

How Is Loss of Earning Capacity Calculated

Establishing loss of earning capacity can be complex. An experienced car accident attorney works to gather the evidence needed to secure fair compensation.  Factors considered include:

  • Your Work History
  • Educational Background and Skills
  • The Nature of Your Injuries
  • Vocational Assessment

Claiming Loss of Earning Capacity in Alabama Post-Car Accident

Establishing loss of earning capacity after a car accident in Alabama involves a clear set of steps. Here’s a breakdown:

Step 1: Meeting and Case Review

The car accident lawyer in Alabama meets with you to understand your job, salary, the accident, and how your injuries affect your work.

Step 2: Check Your Health

Your lawyer will get a detailed report from doctors to know exactly how your injuries might stop you from working like you used to.

Step 3: Job Analysis

A job expert looks at your skills, job history, and how your injuries affect your job options. They figure out if you can go back to your old job, need a new kind of job, or can’t work at all.

Step 4: Calculate Losses

An expert calculates how much money you’ll likely lose over time because you can’t earn as much as before. This includes thinking about raises and career moves you’ll miss out on.

Step 5: Make a Plan

With all this info, your car accident attorney in Alabama plans the best way to show that the accident has made it hard for you to earn money.

Step 6: Talk to Insurance Companies

Your lawyer tries to get a good deal from the insurance company based on your future earning losses, without going to court.

Step 7: Go to Court if Needed

If a fair deal isn’t possible, your lawyer will take your case to court, using all the evidence to show why you need compensation for your lost earning ability.

Step 8: Get Your Compensation

Once there’s a court decision or a settlement, your lawyer makes sure you get your compensation quickly.

In each step, your car accident lawyer works to make sure you get the money you need to cover the earnings you’re missing out on because of the accident.

Let Us Help

Determining and proving loss of earning capacity requires significant legal and professional resources. At Hill, Gossett, Kemp, P.C., our car accident lawyers in Alabama have the knowledge and experience to build a strong case on your behalf. We understand the long-term consequences of accident injuries. Our compassionate legal team will fight to recover the full amount of compensation you deserve.

If you’ve been injured in a car crash, don’t let a negligent driver ruin your financial future. Contact us today for a consultation.

Get In Touch

For more information about Hill, Gossett, Kemp, P.C.  Attorneys at Law or to schedule an appointment to address your legal needs at either of our two office locations, our Leeds-Moody, Alabama office or our Springville, Alabama office, please contact us at 205.640.2000 or submit the contact form below complete with your email and telephone number.

Legal Disclaimer: No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.

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Legal Disclaimer: No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.