Calculating Lost Income for Self-Employed Individuals After a Car Accident
Work losses may be some of the most financially devastating losses you experience in a car crash. Time spent away from work can be very harmful to your career, resulting not only in lost income but lost opportunities, loss of career-changing projects, and loss of upward momentum in your career. In some cases, injuries are severe enough to end promising professionals’ careers.
If you’re self-employed, you’re likely struggling in the wake of your car crash. Not only do self-employed individuals rarely have a built-in short-term disability or other types of insurance to carry them through these situations, but they may also find it hard to get fair compensation after a collision. We can help. Call Mann & Potter at 205-879-9661 to discuss your next steps.
There are several ways you can calculate your lost income if you are self-employed. Consider these options as you work on your claim.
Invoices Are a Useful Tool
Invoices may be one of the best types of evidence you can use in this type of claim, especially if you have a long history of invoices showing how much you generally earn. If you earn $10,000 monthly, for example, and after your injury, your invoice amounts drop 50%, this will be evident in your documentation. Invoices can also show the specific type of work you do, which may be helpful when you need to prove that your injury has kept you from working.
Estimates of Canceled Work
In some cases, an accident can leave you in the position of canceling work for clients. This is a huge financial blow, and it’s one that should be compensated. You may want to provide copies of contracts showing projects you had going at the time of the collision, proof that you had to cancel projects with clients, and the estimated losses associated with those cancellations.
Tax Documents Are Essential
Tax documents should not be overlooked as you work on proving your income losses. This is particularly helpful if your tax documents show a consistent trend in your income, either showing that it’s stable or steadily increasing. This may allow your attorney to calculate how much you’re likely to lose as a result of the injury and demand compensation for that amount.
Payments for Outsourced Work
You may not have canceled work when you were injured. If you had the ability, you may have chosen to outsource the work to other contractors. That, too, is its own cost, especially if you had to pay a rush fee. This is often the case, as self-employed individuals may prefer to lose a little bit of money upfront and retain the client rather than lose the client completely. Keep copies of paid invoices and outgoing payments to contractors, as you should also recoup those expenses.
This depends largely on the type of relationship you have with your clients. If you have a personal connection with them, they may be willing to write statements for you about how much work you generally do for them, how much they pay you on average, and what it means to have lost your work for the duration of your injury. You may choose to use this type of evidence if your tax documents or invoices aren’t a true reflection of your current income level.
The Value of an Economic Damages Expert
What about other losses you may have suffered? Perhaps you lost out on a major client that would have taken your business to the next level, or maybe you missed out on huge networking events that could have changed your future. If there is a lot of money at stake, your attorney may want to hire an economic damages expert. They can look at the losses you’ve sustained and what kind of ripple effect they will have on your earning potential as a whole.
Find Out How Mann & Potter Can Help You
Don’t let an injury derail your career and leave you financially drained. The team at Mann & Potter is committed to helping you secure the compensation you’re owed after an accident. Let’s chat about your accident, injuries, and self-employment journey. Contact us online or call us at 205-879-9661 to set up a consultation.
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