Economic Loss

• Negligence


  Economic Loss
• Economic loss


  Financial losses that are not physical injuries or physical losses, usually only seen on a balance sheet
• Consequential economic loss


  • Economic loss that results from a physical injury, such as loss of income from losing both legs and not being able to work
• Pure economic loss

  • All other types of economic loss that do not arise from a physical injury
• Economic loss


  • Shop owner loses profits while shop is closed for window repair after a car crashes into it
  • Widow loses income her husband would have contributed after he is killed by employer's negligence
• The courts have limited the amount of economic loss payable in cases of negligence
• The courts have been reluctant to allow damages for pure economic loss as the potential claims could be limitless