Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
If you’re self-employed and lose income after an accident in South Dakota, you can seek compensation for that lost earnings. Under SDCL 21-1-4, courts allow recovery of “loss of compensation or earning capacity.” Follow these steps to document and claim your damages.
1. Understand Covered Damages
- Past Lost Income: Income you actually lost from the accident date to trial or settlement.
- Future Lost Earnings: Projected income you will lose if injuries cause lasting impairment.
- Related Expenses: Costs for bookkeeping help or hiring staff to cover your duties.
2. Gather Business Records
Accurate, contemporaneous business documents form the backbone of your claim:
- Tax returns (last 3–5 years)
- Profit & Loss statements
- Invoices, receipts, and bank statements showing deposits
- Accounting software reports (e.g., QuickBooks summaries)
- Client contracts and cancelled checks or payment confirmations
3. Calculate Your Loss
Work with a forensic accountant or an expert who can:
- Compare average monthly earnings pre-accident versus post-accident
- Adjust for seasonal fluctuations
- Project future losses based on your business plan
4. File Your Claim Promptly
South Dakota has a three-year statute of limitations for personal injury claims (SDCL 15-2-14). Failing to file within this period may bar your recovery. Send a demand letter to the at-fault party or insurance company, attaching your documentation and loss calculation.
5. Negotiate or Litigate
Insurance companies may dispute the amount of lost income. Be prepared to:
- Provide written expert reports
- Submit sworn statements and business records under oath
- Attend mediation or arbitration if required
If negotiations stall, consider filing a lawsuit before the three-year deadline.
Helpful Hints
- Keep digital and paper backups of all invoices and receipts.
- Track mileage and travel expenses related to accident recovery.
- Document any temporary help or subcontractor costs.
- Maintain a daily journal detailing how injuries affect your work.
- Consult a personal injury attorney early to guide evidence gathering.
Key Statutes Cited:
- Lost earnings recovery: SDCL 21-1-4
- Statute of limitations: SDCL 15-2-14