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What are Economic & Non-Economic Damages?

If you get injured because of another’s negligence, the law allows you to seek compensation for your losses, known as damages. These damages fall into two main categories: economic and non-economic.

Understanding the difference between the two helps you understand how compensation is determined and why every case is unique. In Illinois, damages are intended to restore what was taken away, helping you rebuild your life after a serious injury, medical malpractice, or wrongful death.

What Are Economic Damages?

Economic damages refer to the tangible, measurable financial losses resulting from an injury. They represent money you’ve spent or will have to spend because of someone else’s negligence. These damages can be proven with records, receipts, or expert projections.

Common examples include:

  • Medical bills (past and future): hospital stays, surgery, medications, rehabilitation, and follow-up care.
  • Lost income: wages missed while recovering, or income lost because you can’t return to the same job.
  • Reduced earning capacity: if your injury prevents you from doing the work you once could.
  • Property damage: costs to repair or replace damaged property, such as a vehicle.
  • Household or care services: if you need help with daily tasks you used to handle on your own.

In catastrophic cases, such as birth injuries or permanent disabilities, economic damages can include lifetime medical care and ongoing therapy. Because these costs can continue for years, attorneys often work with economists and medical experts to project the full financial impact.

What Are Non-Economic Damages?

Non-economic damages compensate for the human impact of an injury, the physical pain, emotional suffering, and loss of normal life that can’t be measured with bills or receipts. These losses are real and often the most profound part of what victims endure.

Examples include:

  • Pain and suffering, the physical and emotional pain caused by an injury or medical error.
  • Emotional distress, including anxiety, depression, or trauma related to the event.
  • Loss of enjoyment of life, when an injury prevents you from doing activities or hobbies you once loved.
  • Disfigurement or disability. physical changes that affect confidence, relationships, and daily living.
  • Loss of companionship or consortium, especially in cases involving severe injury or wrongful death.

In wrongful death cases, Illinois law also allows recovery for grief, sorrow, and mental anguish. Losing a loved one to negligence carries immeasurable pain, and these damages recognize that emotional toll.

Because non-economic damages are subjective, Illinois law relies on testimony, expert opinions, and compelling storytelling to convey how a person’s life has changed. At Levin & Perconti, our attorneys take time to understand our clients’ experiences so that a jury can see the full picture of what was lost, not just in dollars, but in dignity, comfort, and quality of life.

How is the Value of Damages Determined in Illinois?

Proving economic damages typically requires clear documentation, medical records, pay stubs, invoices, and expert assessments. Non-economic damages, on the other hand, are proven through human stories: how the injury changed a person’s relationships, abilities, or sense of self.

Illinois does not cap non-economic damages in most personal injury cases, meaning juries can award amounts that reflect the full extent of suffering. However, in medical malpractice cases, any amount must still be supported by credible evidence and testimony.

Attorneys often use approaches like the multiplier method (linking non-economic damages to the total of economic damages) or the per diem method (assigning a daily value to pain and suffering) to help juries understand the value of intangible harm.

What Are Punitive Damages?

While economic and non-economic damages are meant to compensate victims, punitive damages are designed to punish defendants whose conduct is especially reckless or intentional. They’re rare, but they can apply in Illinois when a person or company shows “conscious indifference” to others’ safety.

For example, a drunk driver who causes a fatal crash or a corporation that knowingly endangers nursing home residents could face punitive damages. These awards send a strong message that certain behavior is unacceptable.

However, punitive damages are not available in most medical malpractice claims. In those cases, the focus remains on compensating victims for what they have lost rather than punishing providers.

How Can an Attorney Help Maximize the Value of My Case?

An experienced personal injury attorney can identify every type of loss, both financial and emotional, and make sure your claim reflects the full scope of what you’ve endured. From collecting medical records and pay documentation to working with expert witnesses who explain your pain, your lawyer helps build a complete and compelling case.

Attorneys also know how to present your story in a way that resonates with juries or insurance companies, showing not just what the injury cost, but how it changed your life. This balance of evidence and empathy often determines whether a client receives fair, full compensation.

Talk to an Experienced Illinois Personal Injury Attorney

Every injury case is different, and the value of your claim depends on the details of your situation. If you or someone you love was harmed by negligence or medical error, it’s best to speak with an experienced attorney as soon as possible.

At Levin & Perconti, we’ve recovered more than $2 billion for clients throughout Illinois by fighting for both economic and non-economic justice. We treat every case with compassion, care, and a commitment to accountability.

Call (312) 332-2872 to learn more about your legal options. Your consultation is free, and we’ll take the time to listen and help you understand the next steps.

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