What are Compensatory Damages?

  • Compensatory damages are awarded to restore your financial and emotional losses after an accident.
  • The two types of compensatory damages are economic and non-economic damages.
  • Economic damages are compensation for quantifiable financial losses, and non-economic damages are compensation for intangible losses.
  • Our compassionate, experienced lawyers are ready to fight for the compensation you deserve.

Compensatory damages are money you can receive in a personal injury lawsuit to restore you to the position you were in before you were injured. This is legally known as “making you whole.” The idea is that the parties responsible for your injuries are the ones who should pay the costs associated with your injuries, not you. 

It is also possible to recover non-compensatory damages in a lawsuit. For example, punitive damages are awarded to punish the defendant and deter others from similar misconduct, not to compensate the victim. These damages are not available in all cases. 

Our experienced New York personal injury lawyers are real New Yorkers dedicated to fighting for every penny you deserve, and we refuse to back down against even the most combative defendants. We are a leading personal injury law firm in New York with a proven history of securing life-changing case results for our clients.

What Are Examples of Compensatory Damages?

Compensatory damages fall into two categories: economic damages and non-economic damages. Economic damages compensate for the monetary losses associated with your injuries. Non-economic damages compensate for intangible losses associated with your injuries, often related to how the accident affects your quality of life.
Economic Damages Non-Economic Damages
Medical expenses Pain and suffering
Physical therapy Emotional distress
Current and future medical expenses Loss of enjoyment of life
The cost of attendant care Loss of bodily functions
Transportation to the doctor Scarring and disfigurement
The cost of domestic services you can no longer provide yourself, such as childcare Loss of society
Missed days at work Loss of consortium
Lost future earnings and work benefits Humiliation
Property damage Inconvenience

How Are Compensatory Damages Calculated?

Calculations for economic and non-economic damages work differently. To calculate non-economic damages, your attorney might first calculate your economic damages.

Calculating Economic Damages

When calculating economic damages, you must have documentation to prove your economic losses, such as:
Economic Loss Documentation You May Need
Current medical expenses Medical bills and receipts
Future medical expenses
  • Testimony from medical experts and life care planners about your future medical needs
  • Testimony from financial experts about the lifetime cost of your medical care
  • Your medical records
  • A statement from your doctor
Missed days at work
  • Paystubs
  • Recent tax returns
  • Bank statements
  • Self-employment records
Future lost earnings
  • Testimony from medical experts, vocational specialists, and therapists verifying that your earning potential will be lower than before or that you will be permanently disabled
  • Testimony from accountants, economists, and other financial experts about your likely lifetime earnings were it not for your injuries, taking into account inflation and promotions you may have received
Property damage
  • Receipts and billing records from companies that repaired your damaged property
  • An estimate from a reputable source of the value of property that was destroyed

Calculating Non-Economic Damages

When calculating non-economic damages, your attorney will consider the severity of your injuries and how they affect your present and future quality of life. Long-term pain and suffering generally have a higher value.

One of the common methods attorneys use to calculate non-economic damages is the multiplier method. Your attorney assigns a value, usually between 1.5 and 5, based on the short-term and long-term impacts of your injuries. The more severe your suffering, the higher the number. Your attorney will multiply this number by your total economic damages. 

For example, if your economic damages total $100,000, and the multiplier is 3, your attorney will use the following formula to calculate your non-economic damages:

$100,000 X 3 = $300,000

In this case, your total damages would be $400,000:

Economic damages:         $100,000
Non-economic damages: $300,000
Total:                                 $400,000

Insurance companies often attempt to minimize the impact of injuries and use the lowest multiplier. Our award-winning New York personal injury attorneys won’t accept less than you deserve. We power through the nonsense to secure the full and fair compensation you are entitled to under the law.

Getting Paid if You’ve Been Injured

If you or your loved one has been injured in an accident in New York, the first step you need to take is to contact our knowledgeable New York personal injury lawyers. We will aggressively pursue compensation for the full value of your damages while you focus on recovering from your injuries. Among other things, we will:

  • Investigate the accident to identify all of the liable parties.
  • File your insurance claims, including your no-fault insurance claim, if you were in a car accident.
  • Review your medical records and communicate with your doctors to assess the economic and non-economic value of your injuries and losses.
  • Interview you and your significant others to fully understand the anguish and suffering the accident has caused.
  • Calculate your damages and send demand letters to the responsible parties.
  • File a personal injury or wrongful death lawsuit if the liable parties and insurers refuse to pay full compensation.
  • Negotiate a settlement and refuse to accept less than full and fair compensation.
  • Take your case to court and present a strong argument to the jury if a fair out-of-court settlement cannot be secured.

Our experienced personal injury lawyers understand how devastating it is to suffer an injury or suddenly become disabled because of someone else’s carelessness. We will account for every penny when calculating your damages and fight for you.

Reach Out to Our Legal Team if You’re Seeking Compensatory Damages

We are creating a new perception of legal dominance. We take a no-nonsense approach to personal injury cases and are committed to getting you full and fair compensation. We have won hundreds of millions in verdicts and settlements for our clients, and we are ready to fight just as hard for you. 

Our compassionate team of New York personal injury lawyers is ready to take on your case and fight for the compensation you deserve. We charge no upfront fees, and you pay nothing unless we win. 

Contact us online or call (855) NYC-HURT to schedule a free consultation. We are here to answer your questions. Para servir mejor a todos los miembros de nuestra comunidad, ofrecemos servicios en español.

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