Making Changes To Your Life

How To Calculate Damages When You're Self-Employed After A Car Accident

by Kristin Hawkins

If you are involved in a car accident and have become injured, then you will not only be entitled to compensation for your medical expenses but also for lost wages. However, if you are self-employed, then you might wonder if you will still be entitled to compensation since you do not earn wages. Instead, your earnings result from revenue generated from your business. But you should still be able to receive compensation for your injuries.

Your Business Records

With your business records, you should be able to prove your income. This could be a profit and loss statement, a balance sheet, or an income statement. You might be required to submit a 1099, and you will be allowed to use this as evidence of income. Also, if you are an independent contractor, you may obtain a letter from your supervisor. 

If you have a current contract with a client, then you may cite this as an example that you will be paid a specific amount for your services. Since you will not be able to render these services, you may be entitled to compensation.

However, your past income might not tell the full story, and your income might be growing every year. A personal injury lawyer can help you better calculate how much you would have earned if you were not injured. Depending on the severity of your injuries, you will also need to calculate the lifetime of earnings you would have received if you were not injured.

Why Professional Help is Important

You may find it difficult to find documents in order to prove your income especially depending on the industry you are in. Unfortunately, when negotiating with an insurance provider, you may find that they are not receptive and may refuse to fully compensate you for your injuries. 

For this reason, you will want to speak with your personal injury attorney about whether it may be better to take your case to court if you have a strong case. The insurance provider is also more likely to settle close to trial to avoid legal expenses.

Prior to the trial, your personal injury lawyer will be communicating with the other party in an attempt to reach a settlement and avoid a trial. They will also assemble the evidence necessary to give you the maximum chance of winning your case. Then, your personal injury attorney will represent you in court.