Detailed Answer
If you run your own business and lose income after an accident, you can recover those losses as part of your personal injury claim in Missouri. You must prove the amount and the link between the accident and your lost earnings. Below are the key steps under Missouri law.
1. Gather Accurate Financial Records
Collect contemporaneous business documents that show your normal income and expenses before the accident and what you actually earned afterward. Useful records include:
- Tax returns (IRS Schedule C) from the last two to three years
- Profit and loss statements
- General ledgers
- Invoices, receipts, and bank statements
- Appointment books, calendars, and project logs
These records establish your baseline income and the gap caused by your injuries.
2. Calculate Net Income Loss
Net income is your gross revenue minus ordinary and necessary business expenses. Work with a certified public accountant or forensic accountant to:
- Adjust for seasonality or one-time income spikes
- Allocate overhead and fixed costs fairly
- Project future lost profits if your recovery extends into the future
An expert report can quantify your loss with reasonable certainty, which Missouri courts require for lost earnings damages.
3. Authenticate Records under the Missouri Uniform Business Records Act
Under RSMo 490.610–490.650
You can admit business records as evidence if you show they were kept in the regular course of business. Ask your accountant or office manager to certify:
- How and when the records were created
- That the entries were routine and contemporaneous
4. Prepare a Demand Letter or File a Lawsuit
Before filing a suit, send a formal demand letter to the insurer or at-fault party. Include:
- A detailed cover letter describing your accident and injuries
- Documentation of medical treatment
- Financial exhibits showing your lost income calculation
- A deadline (usually 30 days) for a response
If negotiations fail, you can file a personal injury lawsuit in Missouri circuit court.
5. Observe the Statute of Limitations
You generally have five years from the date of the accident to file your claim. See RSMo 516.140. Missing this deadline can bar your recovery.
Disclaimer
This article is for educational purposes and does not constitute legal advice. Consult a qualified attorney to discuss your specific situation.
Helpful Hints
- Back up digital records regularly and store copies offsite.
- Keep a daily journal of your activities and how your injuries affect your work.
- Use time-tracking software to log billable and non-billable hours.
- Get an expert report early to shore up your lost income claim.
- Respond promptly to discovery requests in litigation to avoid court sanctions.