The primary purpose is to establish the financial value of the damage caused by the liable party. It translates physical damage into a specific dollar amount needed to restore the property to its pre-loss condition. This figure is the cornerstone for settlement negotiations or court-awarded compensation. A detailed, professional estimate prevents disputes over the repair cost’s reasonableness and serves as a benchmark to ensure the settlement you receive is sufficient to cover the actual repairs.

Ensure everyone’s safety and call for emergency services if there are injuries. Do not admit fault or make statements about who caused the incident. Your priority is to secure the scene to prevent further harm. Once safe, you can begin gathering information. Anything you say in the immediate aftermath can be used later, so stick to factual observations and cooperate with authorities without speculating on blame.

The calculation looks at your earnings history to establish a reliable average. Gather your pay records for a meaningful period before the injury (e.g., 6-12 months, or the year-to-date). Add up all your earnings—including regular pay, overtime, bonuses, and commissions—then divide by the time period to find your average weekly wage. This average rate is then multiplied by the number of work weeks you missed due to the injury.