What Are Non-Economic Damages? Types, Examples & How They’re Calculated

If you’ve suffered non-economic damages after an accident — physical pain, emotional distress, permanent limitations, or the loss of activities that once mattered to you — the consequences can go far beyond your medical bills and lost wages.

These losses fall into a specific legal category: non-economic damages.

Unlike economic damages, which compensate for measurable financial losses such as medical expenses and lost income, non-economic damages compensate for the human impact of an injury. They can include pain and suffering, emotional distress, mental anguish, permanent impairment, disfigurement, loss of enjoyment of life, and other non-financial losses.

If you were injured in Tennessee or Mississippi, understanding how non-economic damages work can help you understand what may be included in a personal injury claim.

Quick answer: Non-economic damages compensate an injured person for physical, emotional, and personal losses that do not have a fixed dollar value. Pain and suffering is one type of non-economic damage, but non-economic damages can include much more than pain alone.

What Are Non-Economic Damages?

Non-economic damages are compensation for losses that are real and potentially significant but cannot be measured simply by adding up bills or receipts.

For example, an injured person may have:

• $25,000 in medical expenses

• $10,000 in lost wages

• Months of physical pain

• Anxiety about driving after a crash

• Difficulty sleeping

• An inability to participate in favorite activities

• A permanent physical limitation

The medical expenses and lost wages are economic damages because they have a measurable financial value.

The pain, emotional distress, limitations, and loss of enjoyment of life are generally non-economic damages.

Tennessee courts recognize non-economic damages as including losses such as pain and suffering, permanent impairment or disfigurement, and loss of enjoyment of life. These losses are subjective and cannot be reduced to a simple mathematical calculation.

What is the simplest way to understand non-economic damages?

Think of it this way:

Economic damages compensate you for financial losses. Non-economic damages compensate you for the physical, emotional, and personal consequences of an injury.

Both can be part of the same personal injury claim.

What Is the Difference Between Economic and Non-Economic Damages?

Economic and non-economic damages compensate for different types of harm.

Economic Damages	Non-Economic Damages
Medical bills	Pain and suffering
Future medical expenses	Emotional distress
Lost wages	Mental anguish
Loss of earning capacity	Loss of enjoyment of life
Rehabilitation expenses	Permanent impairment
Certain other measurable financial losses	Disfigurement or scarring
Other objectively verifiable financial losses	Loss of consortium or companionship, where applicable

Economic damages

Economic damages are losses that can generally be documented with financial records, bills, invoices, wage statements, or other evidence.

Examples include:

• Emergency medical treatment

• Hospital bills

• Surgery

• Prescription medications

• Physical therapy

• Future medical treatment

• Lost wages

• Loss of earning capacity

• Certain rehabilitation and care expenses

Non-economic damages

Non-economic damages address losses that do not come with a fixed price tag.

Examples include:

• Physical pain

• Chronic discomfort

• Emotional distress

• Mental anguish

• Loss of enjoyment of life

• Permanent impairment

• Disfigurement

• Loss of independence

• Loss of companionship or consortium, when legally recoverable

A personal injury claim may include both economic and non-economic damages.

What Types of Non-Economic Damages Are There?

The specific damages available can depend on the facts of the case and the law that applies. Common categories include the following.

1. Pain and Suffering

Pain and suffering can include the physical discomfort caused by an injury as well as the emotional and mental effects that accompany it.

Depending on the injury, this may include:

• Immediate physical pain

• Chronic pain

• Headaches

• Nerve pain

• Restricted movement

• Muscle or joint pain

• Pain from medical treatment

• Ongoing discomfort

• Fear or distress associated with the injury

Pain and suffering is one type of non-economic damage. It is not the same thing as all non-economic damages.

If you want to understand specifically how pain and suffering may be evaluated in Tennessee and Mississippi, see JMB’s guide to what pain and suffering may be worth in a personal injury case.

2. Emotional Distress and Mental Anguish

An accident can affect more than a person’s physical condition.

An injury may cause:

• Anxiety

• Fear

• Depression

• Sleep problems

• Emotional trauma

• Loss of confidence

• Distress about the future

• Fear of driving after a collision

• Difficulty returning to normal activities

The extent and recoverability of these damages depend on the facts of the case and applicable law. Evidence documenting the emotional effects can be important when establishing the impact an injury has had on someone’s life.

3. Loss of Enjoyment of Life

An injury may prevent someone from doing things that were an important part of everyday life.

For example, an injured person may no longer be able to:

• Play sports

• Exercise

• Travel

• Garden

• Fish

• Hunt

• Play with their children

• Participate in hobbies

• Attend social activities

• Perform ordinary household activities without pain

Loss of enjoyment of life concerns how an injury changes a person’s ability to live and enjoy life as they did before.

4. Permanent Impairment

Some injuries leave lasting physical or functional limitations.

Permanent impairment may affect a person’s:

• Mobility

• Strength

• Range of motion

• Ability to perform everyday tasks

• Ability to participate in activities

• Independence

A permanent injury can also affect the person’s emotional well-being and quality of life.

5. Disfigurement and Scarring

Visible injuries can create lasting physical and emotional consequences.

Examples may include:

• Significant scarring

• Burns

• Facial injuries

• Loss of a limb

• Permanent changes in appearance

• Other lasting physical changes

Whether and how disfigurement is treated as a recoverable category depends on the applicable state’s law and the particular claim.

6. Loss of Independence

Some serious injuries make it difficult or impossible for a person to perform activities independently.

A person may need help with:

• Bathing

• Dressing

• Walking

• Cooking

• Driving

• Household tasks

• Caring for children

• Other ordinary daily activities

The loss of independence can be one of the most significant consequences of a serious injury.

7. Loss of Consortium or Companionship

In some circumstances, an injury can affect a person’s spouse or family relationship.

Loss-of-consortium claims have specific legal requirements and may be treated differently depending on the state and type of claim. They should not be assumed to be available in every personal injury case.

How Are Non-Economic Damages Calculated?

There is no universal formula that determines what non-economic damages are worth in every personal injury case.

Because pain, emotional distress, impairment, and loss of enjoyment of life are personal experiences, their value cannot be calculated in the same way as adding medical bills or lost wages.

Insurance companies, attorneys, and other parties may use different methods or comparisons when evaluating a claim. Some negotiations may involve an informal multiplier or per-diem approach, but these are evaluation tools—not universal legal formulas.

Tennessee courts have recognized the subjective nature of non-economic damages and the difficulty of assigning them a precise monetary value.

Factors that can affect the value of non-economic damages include:

• Severity of the injury

• Duration of the pain and symptoms

• Whether the injury is permanent

• Need for ongoing treatment

• Physical limitations

• Emotional or psychological effects

• Scarring or disfigurement

• Impact on work and daily activities

• Loss of hobbies or recreational activities

• Impact on family relationships

• Loss of independence

• Strength and credibility of the evidence

• Applicable state law

• Comparative fault, where applicable

• Available insurance coverage and other case-specific factors

Does a larger medical bill mean more non-economic damages?

Not necessarily.

Medical bills are economic damages. They may provide evidence about the seriousness of an injury, but there is no automatic dollar-for-dollar relationship between medical expenses and non-economic damages.

Two people could have similar medical expenses but experience very different levels of pain, emotional distress, impairment, or disruption to their lives.

That difference can matter when evaluating a personal injury claim.

Recommended for you: If you have been involved in a personal injury try our free personal injury and payout settlement calculator for an estimate payout.

How Do You Prove Non-Economic Damages?

Unlike a medical bill, there is no receipt showing exactly what someone’s pain or loss of enjoyment of life is worth.

The evidence must help demonstrate what happened, how serious the injury is, and how the injury changed the person’s life.

Depending on the circumstances, evidence may include:

Medical records

Medical records can document:

• Diagnosis

• Treatment

• Symptoms

• Pain complaints

• Procedures

• Medications

• Physical limitations

• Prognosis

• Future treatment needs

Photographs and videos

Photographs can document visible injuries, bruising, burns, scars, swelling, or changes over time.

Videos may also demonstrate mobility limitations or difficulties performing ordinary activities.

Testimony from family and friends

People who regularly interact with an injured person may be able to describe changes they personally observed after an injury.

For example, they may notice that someone who once exercised regularly can no longer do so, or that a previously active person now struggles with ordinary activities.

Personal documentation

Keeping a consistent record of symptoms and limitations can help document the day-to-day impact of an injury.

A person may record:

• Pain levels

• Sleep problems

• Activities they can no longer perform

• Treatment and recovery

• Changes in mobility

• Emotional effects

• Missed activities or family events

This type of documentation is not a substitute for medical evidence, but it can help show how an injury affects daily life.

Evidence of permanent limitations

When an injury causes lasting impairment, medical opinions, treatment records, functional assessments, and other evidence may help establish its long-term effects.

The goal is not simply to say, “I am hurting.”

The goal is to provide credible evidence showing how the injury has affected your body, your daily life, your relationships, and your future.

Non-Economic Damages in Tennessee

Tennessee law recognizes non-economic damages as a category of damages that can include losses such as pain and suffering, permanent impairment or disfigurement, and loss of enjoyment of life.

Under Tennessee Code Annotated § 29-39-102, non-economic damages in a civil action are generally subject to a statutory cap.

Does Tennessee have a cap on non-economic damages?

Generally, yes.

Under current Tennessee law, the general cap is $750,000 for each injured plaintiff.

For an injury or loss that qualifies as catastrophic under the statute, the cap increases to $1 million.

Tennessee law defines a catastrophic injury or loss to include:

• A spinal cord injury resulting in paraplegia or quadriplegia

• Amputation of two hands, two feet, or one hand and one foot

• Third-degree burns over 40% or more of the body, or third-degree burns involving 40% or more of the face

• The wrongful death of a parent leaving a surviving minor child or children for whom the deceased parent had lawful custody or visitation rights

The statute also contains specific provisions and exceptions that can affect how the limitation applies to a particular case.

The Tennessee cap does not apply to economic damages

The statutory limitation concerns non-economic damages.

Economic damages—such as qualifying medical expenses, lost wages, and other objectively verifiable financial losses—are not subject to this particular non-economic damages cap.

Is Tennessee’s non-economic damages cap constitutional?

The Tennessee Supreme Court addressed the constitutionality of the statutory cap in McClay v. Airport Management Services, LLC, 2020.

The court concluded that the statutory cap did not violate the Tennessee Constitution’s guarantees concerning the right to a jury trial, separation of powers, or equal protection.

The cap therefore remains part of Tennessee’s current civil-damages framework.

Can multiple claims share the same Tennessee cap?

Yes, in certain circumstances.

In Yebuah v. Center for Urological Treatment, PLC, the Tennessee Supreme Court addressed a case involving an injured spouse and a derivative loss-of-consortium claim by the other spouse.

The court held that the statutory language creates a single aggregate cap for the injured spouse’s non-economic damages and the derivative loss-of-consortium damages, rather than a separate cap for each spouse’s claim.

This is an important distinction because the statutory language refers to the aggregate amount of non-economic damages, including certain derivative claims.

What does the Tennessee cap mean for an injury claim?

A $750,000 or $1 million statutory limit is not a valuation of an injury.

It is a legal limitation on covered non-economic damages in cases to which the statute applies.

An injured person does not automatically receive the maximum amount simply because the injury falls within a particular category. The actual value of a claim depends on liability, evidence, the nature and severity of the injury, applicable law, and other circumstances.

Non-Economic Damages in Mississippi

Mississippi law also recognizes non-economic damages as compensation for subjective, non-pecuniary losses.

Under Mississippi Code § 11-1-60, non-economic damages include losses arising from matters such as death, pain, suffering, inconvenience, mental anguish, emotional distress, loss of society and companionship, loss of consortium, physical impairment, and other non-pecuniary losses.

The statute separately defines economic damages as objectively verifiable monetary losses.

Does Mississippi have a cap on non-economic damages?

Generally, yes—but the applicable cap depends on the type of claim.

For qualifying medical-malpractice actions filed on or after September 1, 2004, Mississippi law limits non-economic damages to $500,000.

For other civil actions covered by § 11-1-60(2)(b), the general statutory limit is $1 million in non-economic damages.

That distinction is important because the $500,000 medical-malpractice limitation should not be presented as the general cap for an ordinary car accident or other non-medical personal injury claim.

What does the Mississippi cap mean?

The $1 million figure for qualifying civil actions is a statutory limitation, not an automatic settlement amount or prediction of what an injury is worth.

A person’s actual recovery depends on factors including:

• Liability

• The nature and severity of the injury

• The evidence supporting the claim

• Economic losses

• Non-economic losses

• Applicable Mississippi law

• Comparative fault, where applicable

• Insurance coverage

• The specific cause of action

Has Mississippi’s non-economic damages cap been challenged?

The constitutionality of Mississippi’s general non-economic damages cap was challenged in litigation involving Sears, Roebuck & Co. v. Learmonth.

However, the Mississippi Supreme Court did not decide the constitutional question in that case. The court concluded that the procedural posture and post-trial arguments did not provide a sufficient basis for it to declare the statute constitutional or unconstitutional.

Accordingly, it is more accurate to say that the Mississippi Supreme Court has not definitively resolved the constitutional question in Sears, rather than saying that the cap was upheld in that case.

Can You Recover Both Economic and Non-Economic Damages?

Yes. A personal injury claim can potentially include both economic and non-economic damages.

For example, someone injured in a car accident might have:

Economic damages:

• Emergency medical treatment

• Surgery

• Physical therapy

• Prescription medication

• Lost wages

• Future medical expenses

Non-economic damages:

• Physical pain

• Emotional distress

• Loss of enjoyment of life

• Permanent impairment

• Disfigurement

• Other personal consequences of the injury

The two categories compensate for different aspects of the same injury.

What Can Affect the Strength of a Non-Economic Damages Claim?

There is no checklist that guarantees a particular recovery. However, a claim is generally easier to evaluate when there is strong evidence documenting both the injury and its impact.

Important evidence may include:

Clear medical documentation

Consistent medical records can establish the nature, severity, treatment, and prognosis of an injury.

Consistent treatment

Following reasonable medical recommendations can help document the progression of an injury and its effects.

Evidence of lasting impairment

Permanent or long-term limitations can be particularly significant when evaluating the impact of an injury.

Documentation of daily-life changes

Showing what you can no longer do—or what you can only do with difficulty—can help demonstrate the real-world consequences of an injury.

Witness testimony

Family members, friends, coworkers, and others who personally observe the effects of an injury may provide important evidence.

Evidence of future consequences

When an injury is expected to affect someone for years or permanently, medical opinions and other evidence may help establish the future impact.

Can an Insurance Company Decide How Much My Non-Economic Damages Are Worth?

An insurance company can evaluate a claim and make a settlement offer, but its evaluation is not a final legal determination of what your claim is worth.

An insurer may consider medical records, treatment, liability, documented losses, policy limits, and other factors when evaluating a claim.

But an insurance company’s offer is not the same thing as a court’s determination of damages.

This distinction matters because non-economic losses can be difficult to document. An insurance company may focus heavily on bills and treatment costs while giving less weight to the actual impact an injury has had on a person’s life.

That is one reason thorough documentation and a careful evaluation of the evidence matter when pursuing a personal injury claim.

Frequently Asked Questions About Non-Economic Damages

What are examples of non-economic damages?

Examples include pain and suffering, emotional distress, mental anguish, loss of enjoyment of life, permanent impairment, disfigurement, and certain losses involving companionship or consortium. The categories available depend on the applicable law and facts of the claim.

Is pain and suffering a non-economic damage?

Yes. Pain and suffering is one type of non-economic damage. Non-economic damages can also include emotional distress, permanent impairment, disfigurement, loss of enjoyment of life, and other non-financial losses.

How are non-economic damages calculated?

There is no universal mathematical formula. The value may be evaluated based on the severity and duration of the injury, its effect on daily life, permanence, emotional consequences, supporting evidence, applicable law, and other circumstances. Informal methods such as multipliers or per-diem calculations may sometimes be used during negotiations, but they are not universal legal formulas.

Are non-economic damages capped in Tennessee?

Generally, yes. Tennessee Code Annotated § 29-39-102 generally limits non-economic damages to $750,000 for each injured plaintiff, with a $1 million limit for specified catastrophic injuries or losses. The statute also contains specific provisions and exceptions that can affect how the cap applies.

Are non-economic damages capped in Mississippi?

Generally, yes. For qualifying civil actions other than applicable medical-malpractice claims, Mississippi Code § 11-1-60 generally limits non-economic damages to $1 million. Applicable medical-malpractice claims filed on or after September 1, 2004 are subject to a separate $500,000 limitation.

Can I recover both economic and non-economic damages?

Potentially, yes. Economic damages compensate for measurable financial losses, while non-economic damages compensate for qualifying physical, emotional, and personal losses. Whether you can recover either or both categories depends on the facts and law applicable to your claim.

Do I need a lawyer to recover non-economic damages?

You are not necessarily required to hire a lawyer to pursue a personal injury claim. However, non-economic damages can be more difficult to document and evaluate because they do not have a fixed price. An experienced personal injury lawyer can review the evidence, applicable law, insurance coverage, and circumstances of the claim and help determine how the damages should be presented.

How JMB Can Help With a Personal Injury Claim

An injury can affect far more than your bank account.

Medical bills and lost wages may show the financial consequences of an accident, but they do not necessarily show what it means to live with pain, miss activities you once enjoyed, struggle with everyday tasks, or face a permanent change in your life.

At John Michael Bailey Injury Lawyers, we look at the full impact of an injury—including the economic and non-economic losses that may be part of a personal injury claim.

We fight insurance companies and work to build claims with the evidence needed to show what an injury has actually done to someone’s life.

If you or a family member has been injured because of someone else’s negligence, you can talk with JMB about your situation.

Call 888-WE-FIGHT  or contact us for a free consultation.

If you’re hurting, we’re working.

Important Legal Disclaimer

This article provides general information about non-economic damages and is not legal advice. Laws, statutory limits, exceptions, and deadlines can change and may depend on the specific facts and type of claim. Tennessee and Mississippi law can also treat different causes of action differently. If you have been injured, speak with a qualified attorney about the specific circumstances of your case.