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Short summary: If you are self-employed and cannot work because of an accident, you can recover past and (sometimes) future lost earnings from a liable third party or through workers’ compensation if the accident is work-related. Missouri courts and insurers expect objective, well-documented proof of loss. Good documentation, medical records showing work restrictions, and often economic or accounting testimony are key to proving your claim.

1. What legal routes are available in Missouri?

• If someone else caused your injury (car crash, slip-and-fall, etc.), you pursue a personal injury claim against that party or their insurer. Damages may include past and future lost earnings.
• If the injury occurred in the course of your employment and your claim fits Missouri’s workers’ compensation system, wage-replacement benefits under Mo. Rev. Stat. Chapter 287 may apply. See Missouri workers’ compensation statutes: Mo. Rev. Stat. Chapter 287.

2. What types of income counts for a self-employed person?

For self-employed claimants, courts look at earnings that reflect your actual loss of ability to earn, which typically include:

• Net business profits (Schedule C or similar). Insurers and courts care about net, taxable income rather than gross receipts.
• 1099 or contract income (if you are an independent contractor).
• Payroll you paid yourself from an S-corp or other entity.
• Invoiced-but-unpaid work you lost because you could not perform.
• Lost future contracts or recurring client payments if you can show a fair probability they would have continued.

3. Strong evidence to prove past lost earnings

Collect multiple, consistent sources. The stronger and more objective the proof, the better:

• Income tax returns (last 2–5 years). Tax returns are a primary source for establishing historical earnings.
• Schedule C, K-1s, W-2s, or business tax schedules that show net profit/loss.
• Profit & loss statements and balance sheets prepared contemporaneously with the business operation.
• Bank statements showing deposits from clients and business withdrawals to you.
• Invoices, contracts, purchase orders, and canceled checks or electronic payment records showing revenue you actually earned.
• Calendar entries, emails, texts, and client communications demonstrating missed jobs or canceled appointments tied to your incapacity.
• Receipts for business expenses showing ongoing overhead that continued while you were unable to work.
• Affidavits or sworn statements from regular clients confirming lost work, plus statements from an accountant or bookkeeper who prepared your records.

4. Proving future lost earnings (expected future loss)

Future losses require showing the likely reduction in future earning capacity. Typical proof includes:

• Expert testimony from an economist, vocational expert, or certified public accountant who can convert your historical earnings into a present-value estimate of future lost income.
• Evidence of your business trajectory before the accident (growing client base, signed multi-year contracts, forecasts used for the business).
• Medical records and a treating doctor’s opinion on work restrictions and prognosis linking the injury to reduced future earnings.
• Documentation of plans you had made (e.g., pending contracts, bids, or scheduled work) that likely would have produced income.

5. Medical proof that you could not work

Connect medical evidence to lost income:

• Office notes, diagnostic tests, surgery reports, and therapy notes that document injury and treatment.
• Explicit work-capacity statements from treating physicians (e.g., restrictions, dates you were unable to work, expected recovery timeline).
• Functional capacity evaluations or occupational therapy reports demonstrating inability to perform key job functions.

6. Business records and admissibility

Keep originals and get certified copies when possible. Missouri courts admit business records under established rules; contemporaneous records (bank records, invoices, tax returns) carry strong weight. For guidance on Missouri court rules, see: Missouri Courts — Court Rules & Procedures. Always preserve electronic records and maintain a clear chain showing how documents were created and stored.

7. Common calculation methods

Some practical approaches used by accountants and experts:

• Average monthly net income: total net profit over recent years divided by months to get a baseline monthly earning figure.
• Replacement method: what it would cost to hire someone to perform the work you missed (useful if your role would be replaced temporarily).
• Comparative year method: compare revenue for the period after the accident with the same period in prior years (seasonal businesses).
• Projection with adjustments: forecast future income based on historical growth rates, then reduce for post-injury limitations and discount to present value.

8. Mitigation and reasonableness

You must generally try to reduce losses where reasonable (e.g., accept light-duty work or subcontract). Insurers or courts may reduce recoverable damages if you failed to make reasonable efforts to limit losses. Keep records of mitigation efforts (job searches, temporary work, offers declined due to medical restrictions).

9. Working with professionals

Consider these professionals:

• Accountant or CPA to produce profit & loss statements, and to testify about your earnings and reasonable projections.
• Vocational expert or economist for future-loss calculations.
• Attorney experienced in Missouri personal injury or workers’ compensation law to advise on strategy, settlement negotiations, and courtroom proof.

10. Practical steps to take immediately

1. Preserve all business records (tax returns, P&L, invoices, emails, bank statements). Back them up digitally.
2. Get and save detailed medical records and a doctor’s statement on your work capacity.
3. Document every lost job, appointment cancellation, and client who refused or delayed work because of your injury—include dates and copies of communications.
4. Notify insurers and, if applicable, your workers’ compensation carrier. Follow claim filing timelines and send communications by certified mail or tracked email when appropriate.
5. Consult an attorney early if the other party’s insurer disputes liability or damages, or if your claim involves substantial future losses.

Relevant Missouri law and resources

Missouri has a separate workers’ compensation system (Mo. Rev. Stat. Chapter 287) for workplace injuries. For personal-injury claims against third parties, damages for lost earnings are proven with the evidence described above and shaped by Missouri procedural and evidentiary rules. For statute searches and official text, see the Missouri Revisor of Statutes: revisor.mo.gov. For workers’ compensation statutes: Mo. Rev. Stat. Chapter 287. For court rules and evidence procedures, see the Missouri Courts rules pages: Missouri Courts — Court Rules.

11. Mistakes to avoid

• Don’t rely on a single source of proof (e.g., only a bank statement). Use tax records plus invoices and client confirmations.
• Don’t miss deadlines to file claims or respond to insurers—timelines vary by type of claim.
• Don’t post details about the accident or injuries on social media—insurers will use inconsistent statements against you.
• Don’t accept a quick low settlement before you know the full extent of medical treatment and recovery time.

Helpful Hints

• Start a dedicated folder (paper and digital) the moment the accident happens. Label and date everything.
• Ask your doctor for a clear written statement about work restrictions and expected duration.
• If you use an accountant, ask them to prepare a contemporaneous, signed statement about your business income and expected future income trajectory.
• Request records directly from third parties (clients, banks, payroll services) rather than relying solely on memory.
• Get client statements in writing confirming lost jobs or canceled contracts due to your inability to work.
• Keep a daily journal of symptoms and activities; courts may use it to evaluate credibility.
• For substantial future-loss claims, plan for expert support—economists and vocational specialists increase credibility and the chance of a full recovery.
• If the accident is work-related, compare the benefits available under workers’ compensation (Chapter 287) versus a third-party suit; an attorney can help compare outcomes.

Disclaimer: This article explains general principles and common evidence used to prove lost income for self-employed individuals in Missouri. It is educational only and not legal advice. For advice about your specific situation, consult a licensed Missouri attorney.