Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified Maryland attorney to discuss the specifics of your case.
Detailed Answer
1. Understand Recoverable Economic Damages
Under Maryland common law, you can seek compensation for lost self-employed income as an economic damage in a personal injury claim. While no specific statute sets out a formula, Maryland courts recognize recoverable economic losses, including net profits and lost earning capacity. See Maryland General Assembly for statutes: mgaleg.maryland.gov.
2. Gather Comprehensive Financial Records
- Tax returns: Obtain federal and state returns for at least three years before the accident.
- Profit & loss statements: Produce monthly or quarterly statements showing gross revenue, expenses, and net income.
- Bank and credit card statements: Highlight deposits tied to business operations.
- Invoices and client contracts: Show work you were scheduled to perform.
- Receipts for business expenses: Demonstrate overhead costs that would have been incurred but for the accident.
3. Document Hours and Work Patterns
Keep detailed time logs showing hours worked on client projects before and after the accident. This helps establish a baseline of your normal productivity.
4. Obtain Expert Support
- Accountant or forensic accountant: Prepare an expert report on lost profits and future earning capacity.
- Vocational expert: Assess your ability to return to work and project lost wages if you cannot fully resume business operations.
5. File Your Claim Promptly
Maryland’s statute of limitations for personal injury is three years from the date of the accident. Md. Cts. & Jud. Proc. Code § 5-101 (5-101). Filing after this period may bar your claim.
6. Negotiate or Litigate
Submit your documentation and expert reports during settlement negotiations. If the insurer refuses to offer fair compensation, you may file a lawsuit in the appropriate Maryland circuit court.
Helpful Hints
- Start collecting financial records immediately to avoid gaps.
- Keep backup copies of all documents in both digital and paper form.
- Maintain a daily journal of pain, symptoms, and work limitations—it adds context to your financial records.
- Consult an accountant before you engage experts to ensure they use accepted valuation methods.
- Track medical treatment dates and costs; some medical expenses may be recoverable separately.