What two components are essential for calculating damages in a liability claim?

In a liability claim, calculating damages typically requires a focus on the direct financial impacts that a claimant has suffered as a result of the incident in question. Medical expenses represent the costs incurred for any treatment, medical attention, or rehabilitation that a claimant has needed due to injuries sustained. These expenses can encompass hospital bills, therapy sessions, and medication costs, all of which reveal the tangible financial burden placed on the injured party.

Lost wages are equally important, as they quantify the income that a claimant has lost due to their inability to work after an injury. This consideration is critical, as financial stability can be severely impacted if an individual cannot perform their job during recovery. Taken together, medical expenses and lost wages form a core part of the economic damages in liability claims, making them the essential components for calculating overall damages.

The other options, while they may represent different aspects of liability or claims, do not directly focus on the immediate financial losses resulting from an incident. Emotional distress and punitive damages can be components of a claim but are often viewed as non-economic damages or awards intended to punish the responsible party, rather than addressing the direct financial impact on the injured party. Physical damages and property loss are more relevant property-related concerns, while insurance premiums and legal fees reflect ongoing