Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney to address your specific situation.
Detailed Answer
If you run your own business and suffer injuries in an accident caused by someone else, you may recover lost self-employed income as part of your personal injury claim under Oregon law. Here’s how to document and claim those losses effectively:
1. Understand Oregon’s Personal Injury Framework
Under ORS 31.710, a plaintiff in a personal injury action can seek compensation for “loss of earnings” and “loss of future earning capacity.” You must file your lawsuit within two years of the accident date, per ORS 12.110.
2. Track and Quantify Past Income Loss
- Daily logs: Record the dates and hours you missed due to injury.
- Invoices and receipts: Retain copies of client invoices and proof of non-payment.
- Bank statements: Highlight deposits reflecting business income before and after the injury.
- Tax returns: Use your last two to three years of Schedule C or 1040 filings to establish baseline earnings.
- Profit & Loss statements: Prepare or update statements that show monthly or quarterly income declines.
3. Project Future Income Loss
If your injuries affect your long-term earning capacity, you’ll need expert testimony. Accountants or vocational economists can prepare reports calculating:
- Expected revenue had the accident not occurred.
- Reduced capacity or hours you can work in the future.
- Projected earnings gap over your expected work life.
4. Notify Insurers and the At-Fault Party
Promptly inform the at-fault driver’s liability insurer in writing. Include a cover letter summarizing your injuries, treatment, and a preliminary estimate of lost income. Insurers often require a sworn proof of loss form; complete it accurately.
5. Preserve and Organize Documentation
- Maintain a master folder: digital or paper containing all medical records, bills, and income documentation.
- Use clear labels and dates: make it easy for adjusters, experts, or a court to follow your financial history.
- Backup electronic files: store copies in the cloud or on an external drive.
6. Work with Professionals
Consider consulting:
- An accountant familiar with litigation support to verify calculations.
- A vocational expert for long-term earning capacity assessments.
- A personal injury attorney to guide you through negotiation or trial.
Helpful Hints
- Start recording lost hours the day after your accident to avoid gaps in your timeline.
- Keep contemporaneous notes of how your injuries impact daily business tasks.
- Get written statements from clients who cancelled work due to your injury.
- Request duplicate copies of any financial record you share with insurers.
- Review ORS 31.710: https://www.oregonlegislature.gov/bills_laws/ors/ors031.html#ORS%2031.710
- Track the two-year deadline under ORS 12.110: https://www.oregonlegislature.gov/bills_laws/ors/ors012.html#ORS%2012.110
By diligently documenting your lost self-employed income and working with the right professionals, you position yourself to recover fair compensation for both past and future earnings under Oregon law.