When one party causes physical, mental, or reputational damage to another, the legal term ‘personal injury’ is used. Such an injury may be caused due to a person or entity’s negligence or malicious intent.
The injury facts across the US are alarming for the year 2023. The National Safety Council records over 63 million injuries with 227,039 preventable deaths. Besides the physical pain and emotional suffering that personal injuries bring, the claims process for compensation can be a blow to one’s finances.
This is particularly true of those who may have to navigate the legal landscape for the first time. In this article, we will discuss the common types of personal injuries along with their impact on finances. There are also a few strategies discussed to lessen the fiscal impact, so keep reading.
Most Common Types of Personal Injuries
Personal injuries are indeed unforeseen, happening anytime and anywhere. None of us can know for certain when we’re the most vulnerable to being injured due to someone else’s negligence.
The term ‘personal injury’ is a broad one, acting as an umbrella for the following –
- Automobile accidents which include crashes caused by cars, motorcycles, and trucks
- Pedestrian and cyclist accidents have become commonplace due to negligent and reckless driving. They are at a 40-year high to be precise.
- Slip and fall injuries that may take place in a third party’s residential or commercial establishment
- Occupational injuries that occur during duty because of hazardous substances, heavy machinery, slip and fall, electrocution, etc.
- Dog bites that happen, especially common among children and delivery workers
- Medical malpractice injuries sustained due to incorrect treatment or omission of a procedure that could save a patient’s life
- Product liability claims where customers are injured due to a marketable product
- Wrongful death claims where the victim, either of a person or entity’s negligence, succumbs to their injuries
One can and must stay vigilant to ensure they stay safe against the above-mentioned common personal injuries. However, a slight oversight or even oblivion is not always escapable. Carefulness only reduces the risk of personal injury; it does not eradicate it. This is why it is important to be aware of the potential costs that a personal injury claim may involve.
What Are the Costs That Claims May Incur?
Is a personal injury claim like a financial iceberg where what’s visible on the surface belies what’s hidden? This is only true when you’re uninformed and unaware of the potential costs. Let’s discuss briefly all the possible expenses a personal injury claim may incur.
The Cost of Advocacy
In many cases of personal injury, the insurer of the defending party is not willing to offer fair compensation. Then, seeking legal justice becomes imperative but that comes with a price. The victim will have to hire experienced personal injury attorneys for a fair representation in court.
Naturally, this will involve legal fees, administrative expenses, and additional outlays for court filings. There is one piece of good news that may alleviate some of the financial stress. According to Russell & Hill, personal injury lawyers work on a contingency basis.
This means the plaintiff does not have to worry about the expenses involved in the court representation. The payment must be made only after the case has been won. Attorneys will simply claim a percentage of the awarded compensation.
Medical Expenses
Some personal injuries are worse and more debilitating than others. Post-incident medical care follows an ascending cost trajectory, sometimes quickly moving from emergency services to long-term rehabilitation.
Many charges come under the victim’s belt, including hospitalization, ambulance, medicines, surgery, etc. In case of no adequate insurance coverage or positive case outcome, such expenses can drill a massive hole in the savings.
Expert Witness Fees
Reviewing a case is not a trivial task. It can take hours or days to examine a personal injury claim thoroughly and prepare a report. Matters only get complicated further when a case is complex.
An example would be an automobile accident involving multiple causes and liable parties. The expert can only take to the witness stand when they are convinced of the case outcome based on the prepared report. For our aforementioned example, charges will be high.
Lost Wages
In most cases of personal injury, the victim is unable to resume work unless they’ve fully recovered. If the case is severe, we could be looking at weeks or months of lost income due to hospitalization and rehabilitation.
The time spent away from one’s livelihood acts as an invisible drain on resources. This can threaten the victim’s financial security, also hanging their future earnings on the balance.
Effective Strategies That Cushion the Fiscal Impact
Personal injuries of all kinds come with some degree of initial shock. Once that has subsided, the victim must awaken to the realization of its impact on their finances. Thankfully, there are ways rooted in strategic planning and foresight that can act as a much-needed cushion. Let’s discuss them in detail.
Maximizing Insurance Understanding
If you’re unsure about your current insurance policy and its coverage, take time out to thoroughly grasp it. Good insurance understanding will be the roadmap that guides you when you’re lost in a maze of personal injury expenses.
Review the coverage details and exclusions. Also, discuss the same with your insurer to stay prepared for any potential mishaps. An example would be disability insurance which may become a bulwark against lost wages during occupational injuries. Consider policies whose coverage extends to short-term and long-term gaps.
Relying on Expert Legal Guidance
As mentioned previously, the legal waters are often turbulent and may require the help of a skilled personal injury lawyer. Choose a reputed law firm with a solid track record for winning similar cases, even complex ones.
A good attorney will clarify case complexities, prevent you from making moves that will drain your resources, and heighten success chances. The financial burden will ease when you’re awarded fair compensation from the jury.
Managing Finances Wisely
Attorneys will do their part as you must do yours. Start by developing a budget blueprint to prioritize needs over wants. Then, you can create an adjusted spending plan based on the new expenses that have crept in.
Now that you have the time, start filling up an emergency fund that will behave as a financial life raft. You can also explore alternative income streams like property rentals, remote part-time work, etc. It always pays off to stay guarded and ready against any threats to financial stability.
Final Thoughts
The information shared in this article is important to retain because personal injuries can happen to anyone, at any time, and anywhere. Studies suggest that over 39 million personal injury cases happen every year, each requiring proper medical treatment.
A lot of these cases will end up in court one way or another, which would incur the above-mentioned costs for the plaintiff. Hopefully, if they abide by the key strategies, the impact will be manageable.