Mike’s Quick Answer
It depends on the business, records, seasonality, expenses, and effect of the injury, but self-employed people can often present a lost-income or lost-earning-capacity claim. The strongest proof compares reliable pre-accident performance with missed work, canceled opportunities, replacement labor, reduced output, and post-accident results without treating gross revenue as personal income.
Revenue, Profit, and Earning Capacity Are Different
A business can continue collecting old invoices while the owner cannot perform new work. It can lose revenue while also avoiding expenses. It can hire help and preserve sales at an added cost.
The claim should identify the actual economic harm rather than selecting the highest number. An accountant or economist may be needed when records are complex.
Build the Proof From Ordinary Business Records
Tax returns, profit-and-loss statements, general ledgers, invoices, contracts, bank deposits, appointment calendars, job logs, customer communications, payroll, and merchant records can establish a pattern.
Canceled projects and lost customers should be documented contemporaneously. The defense may compare public posts, business advertising, staffing, and later performance.
Explain What the Owner Could Not Do
Physical restrictions may prevent field work while allowing limited management. Cognitive symptoms may affect concentration or client contact. Reduced hours, slower production, delegated work, and lost growth should be described accurately.
Mike can coordinate the legal presentation with accounting proof. He does not determine tax reporting, business valuation, or deductible expenses.
Frequently Asked Questions
What if my tax returns show low income?
It depends on why and what other reliable records show. Tax reporting can limit or complicate the claim, and it should be addressed honestly with legal and tax professionals.
Can I claim the cost of hiring a replacement?
It depends on necessity, reasonableness, and whether the cost duplicated another claimed loss. Contracts, payroll, invoices, and work assignments can support the analysis.
Sources and Further Reading
Important
This article provides general New Jersey information and is not legal advice. Every matter depends on its facts, policy language, deadlines, and applicable law. Medical questions should be discussed with a licensed physician. Tax questions should be discussed with a qualified tax professional.