Disclaimer: This article provides general information and does not constitute legal advice. Consult a licensed attorney for advice specific to your situation.
Detailed Answer
Under Michigan’s no-fault auto insurance law, you can recover wage loss benefits if an accident prevents you from earning income. Michigan Compiled Laws (MCL 500.3107) covers work loss benefits for self-employed individuals. These benefits pay up to 85% of your net income lost due to the accident. See MCL 500.3107(1)(b) for details.
To qualify, show your net income and reasonable earnings. Net income means your gross income minus ordinary business expenses, as reported on your most recent state or federal tax return.
1. Gather Key Financial Documents
- Federal and state tax returns covering at least three years.
- Profit and loss statements or general ledgers.
- Bank statements and canceled checks showing business deposits.
- Invoices, contracts, or receipts that document your earnings.
- A daily work log or timesheets noting hours you would have worked.
2. Calculate Your Income Loss
Calculate your pre-accident net income using your average monthly profit. Multiply your weekly or monthly net profit by the weeks or months you miss work. Compare this to any income earned post-accident to find the net loss.
3. Submit Your Wage Loss Claim
Send the no-fault insurer a completed wage loss questionnaire and all supporting documents. Michigan’s no-fault form includes fields for average monthly earnings and deductible expenses. The insurer has 30 days to request additional information. If they deny or undervalue your claim, you can file a petition with the Department of Insurance and Financial Services under MCL 500.3107(4).
Helpful Hints
- Keep copies of every document you submit.
- Use certified mail or electronic tracking when sending records.
- Update your attorney or insurance adjuster if your medical recovery timeline changes.
- Maintain a clear distinction between personal and business expenses.
- Consult a tax professional to verify your net income calculation.
- Review your policy’s “maximum benefit” and “deductible” provisions to set realistic expectations.