How Insurers Evaluate Emotional Distress in Personal Injury Cases
In personal injury cases, physical injuries are only one part of the equation. Victims often suffer from emotional and psychological harm that can have a lasting impact on their well-being, relationships, and quality of life. One of the most complicated elements of a personal injury claim is proving and valuing emotional distress.
At Reese Legal, our Orlando personal injury attorney helps clients with claims involving emotional distress. Here, we’ll explain how insurance companies evaluate emotional distress in personal injury claims and what victims can do to make sure their emotional damages are taken seriously.
What Is Emotional Distress in a Legal Context?
Legally, emotional distress refers to the psychological impact a person experiences as a result of a traumatic event, such as a car accident, a slip and fall, a dog bite, or a serious workplace injury. In civil law, it often falls under the broader category of non-economic damages. There are two main types of emotional distress recognized in personal injury law:
Intentional Infliction of Emotional Distress (IIED)
This occurs when someone intentionally causes another person severe emotional trauma through outrageous or extreme conduct. While this is rarer in personal injury cases, it may apply in cases involving assaults or egregious misconduct. Courts often require clear evidence that the conduct was not only intentional but also beyond the bounds of human decency.
Negligent Infliction of Emotional Distress (NIED)
This is more commonly associated with personal injury claims and involves mental suffering caused by someone else’s negligence. The emotional distress must be a direct and foreseeable result of the defendant’s actions. In many jurisdictions, the plaintiff must also show that they were within the “zone of danger” or closely related to a victim of the incident.
How Emotional Distress Fits Into a Personal Injury Claim
When you file a personal injury claim, your damages are typically divided into economic and non-economic categories. Economic damages are easy to quantify and include medical bills, lost wages, property damage, and so on. Non-economic damages include pain and suffering, emotional distress, loss of companionship, and disfigurement.
Insurers tend to scrutinize non-economic damages more heavily because they’re subjective and lack concrete financial documentation. This makes emotional distress one of the most contested aspects of personal injury compensation. Working with an experienced lawyer is essential; at Reese Legal, our personal injury attorney is ready to help with your case.
How Insurance Companies Evaluate Emotional Distress
Insurance adjusters are trained to minimize payouts, especially when it comes to subjective claims. They often rely on objective documentation and may be skeptical of claims that aren’t backed by medical or psychological records. Here are the main factors they consider when evaluating emotional distress:
Severity of the Physical Injury
Insurers often correlate the level of emotional suffering with the severity of the physical injuries. For example, a traumatic brain injury or spinal cord damage is more likely to be associated with significant emotional harm than a minor soft tissue injury. The logic is simple: the more severe the physical damage, the more believable and impactful the emotional distress.
Duration of the Emotional Impact
The longer the emotional distress lasts, the more seriously it will be taken by insurers. Temporary anxiety or trouble sleeping may not be viewed as warranting significant compensation, but ongoing PTSD, clinical depression, or generalized anxiety disorder supported by long-term treatment records can carry more weight.
Medical Documentation and Mental Health Treatment
One of the most important aspects of proving emotional distress is documentation. Without a clear paper trail showing that you sought help and followed through with treatment, your emotional distress claim may be dismissed. Consistent records over time help establish both the severity and duration of your mental suffering. Insurance adjusters will look for:
Diagnoses from mental health professionals
Prescription records for antidepressants, anti-anxiety medications, or sleep aids
Notes from therapy or counseling sessions
Referrals from primary care doctors to mental health specialists
Without this documentation, emotional distress claims are much harder to substantiate. Self-reporting alone is typically not enough. It’s essential to not only seek care but also to attend all appointments and follow prescribed treatment plans. Doing so demonstrates to the insurer that your emotional distress is real, ongoing, and taken seriously.
Expert Testimony
In some cases, a psychologist, psychiatrist, or therapist may be asked to testify or submit a written statement regarding the extent of the emotional harm. Expert testimony adds credibility and can help establish a clear connection between the emotional suffering and the traumatic event. Experts may also testify about the likelihood of future psychological care.
Impact on Daily Life
Insurance companies want to see concrete effects of emotional distress on a person’s life. They’re less likely to offer fair compensation if your suffering appears abstract or unverified. Demonstrating how your mental state has disrupted your routines, relationships, or ability to function adds credibility to your claim. These effects may include:
Inability to return to work
Avoidance of driving, travel, or public spaces
Relationship breakdowns
Withdrawal from hobbies or social activities
Changes in personality or mood
Personal journals, affidavits from family members, or employer statements may be used to paint a fuller picture of the emotional toll. The more specific and detailed the evidence, the harder it is for insurers to dismiss the impact of your emotional suffering. These real-world examples help bridge the gap between medical documentation and the human experience behind your claim.
How Emotional Distress Is Calculated in Settlements
There is no exact formula for calculating emotional distress, but insurers may use several methods to estimate non-economic damages. These methods are intended to provide a structured way to value suffering that doesn’t come with receipts or invoices. Understanding how these calculations work can help injury victims assess what might be a fair settlement.
Multiplier Method
This is one of the most common approaches. The insurer will add up the total economic damages (medical bills, lost wages, etc.), then multiply that number by a factor (usually between 1.5 and 5) based on the severity of the injury and emotional impact. The multiplier is chosen based on several factors.
The factors used to choose the multiplier include the intensity of your emotional distress, the length of your recovery, and whether you required psychological treatment. A higher multiplier is generally reserved for cases involving catastrophic injuries or long-term emotional suffering. Without compelling evidence, Insurance companies may try to assign a lower multiplier.
Another important note is that the multiplier method is often used in pre-lawsuit negotiations, particularly when the case seems straightforward. However, it’s not a hard-and-fast rule and can vary based on the insurance company’s internal guidelines. A skilled personal injury lawyer can push for a more appropriate multiplier based on the full scope of your suffering.
Per Diem Method
Another method assigns a daily monetary value to the victim’s emotional suffering and multiplies it by the number of days they’re expected to endure the distress. The chosen rate must be supported by evidence and knowledgeable opinion, and insurers often challenge this method unless it's strongly documented.
The per diem method aims to reflect the day-to-day impact of emotional distress in a tangible way. It’s often more persuasive in cases where victims experience significant lifestyle disruptions or daily emotional burdens, such as sleeplessness or fear. However, it requires strong supporting documentation to justify both the daily rate and the duration of distress.
Contact Our Personal Injury Attorney Today
Emotional distress is a real and often debilitating consequence of personal injury. Unfortunately, insurance companies aren’t always eager to acknowledge or fairly compensate for mental and emotional suffering.
At Reese Legal, our attorney assists clients in Orlando, Florida, and the surrounding areas with personal injury claims, including those involving emotional distress. Contact our firm today for help with your claim.