Loss of Earnings

What is a Loss of Earnings?

A loss of earnings is a situation in which the injured person has had to take time off work, change jobs, or give up work due to their injury, resulting in decreased or no income and impacting their financial situation.

According to the Legal Information Institute (LII) at Cornell Law School, loss of earnings is defined as “the amount of money that an injured person is prevented from earning because of an injury suffered through the fault of another person.” AS such, loss of earning refers to the impact of injuries caused by negligence or wrongful acts on an individual’s ability to earn income. This term is commonly associated with personal injury cases, where individuals suffer injuries that result in temporary or permanent disability, preventing them from earning income from employment or self-employment.

Legal professionals evaluate loss of earnings based on evidence of income history, medical reports, and expert testimony to advocate for their clients’ rights and financial recovery in accordance with applicable laws and regulations. Compensation for loss of earnings typically includes wage replacement for income that could have been earned during the period of impairment, as well as considering the future earning income loss from a permanent disability that could affect an individual’s ability to advance in their career or business. Understanding loss of earnings is essential in personal injury litigation to ensure that injured parties receive fair compensation for the financial hardships caused by their injuries.