Detailed Answer
If you operate as a self-employed professional or business owner in Minnesota and suffer an accident due to another party’s negligence, you can claim lost income as part of your personal injury damages. You must prove your actual loss with clear records and reasonable projections for future loss of earning capacity. Below are the key steps and legal standards under Minnesota law.
1. Identify Compensable Losses
Under Minn. Stat. § 573.02, a personal injury claim covers loss of earning capacity and past lost income directly related to the injury. Courts allow recovery for:
- Past lost profits: income you earned before the accident.
- Future loss of profits: projected income you will lose due to lasting injury.
2. Gather Financial Records
Document your self-employed income with:
- Tax returns (Schedule C) for the past 3–5 years.
- Business bank statements and invoices.
- Client contracts and cancellation notices attributable to your injury.
- Accounting ledgers, profit-and-loss statements, and bookkeeping software reports.
3. Calculate Lost Income
Work with a certified public accountant or forensic accountant to:
- Compare historical earnings trends against losses during recovery.
- Adjust for seasonal variations and market changes.
- Determine net business losses after expenses.
4. Medical Evidence and Functional Impact
Link your injury to your inability to work with:
- Medical records and doctor’s reports detailing work restrictions.
- Physical therapy notes and rehabilitation timelines.
- Expert testimony, if necessary, to explain how your injury limits business activities.
5. File Your Claim
Submit your demand package to the at-fault party’s insurer. Include:
- A cover letter summarizing your losses.
- All gathered financial and medical documentation.
- A detailed demand for damages, itemizing past and future income losses.
Remember that Minnesota’s personal injury statute of limitations requires you to file suit within two years of the accident date. See Minn. Stat. § 541.07. Missing this deadline can bar your recovery.
6. Settlement or Litigation
The insurer may offer a settlement. Evaluate any offer in light of your CPA’s loss analysis. If negotiations stall, you may file a lawsuit consistent with Minnesota Rules of Civil Procedure.
Disclaimer: This article provides general information only and does not constitute legal advice. Consult a qualified attorney to discuss your specific situation.
Helpful Hints
- Start record-keeping immediately after your accident.
- Keep copies of all financial and medical documents.
- Use professional accounting experts for precise loss calculations.
- Track ongoing business expenses related to your injury.
- Review deadlines carefully to avoid losing your right to sue.