Detailed Answer
If you’re self-employed in Montana and suffer an accident that prevents you from working, you can recover lost income as part of your personal injury claim. Montana law treats lost earnings and loss of earning capacity as compensable damages under Mont. Code Ann. Title 27, Ch. 1, Part 4. To build a successful claim, follow these steps:
- Calculate pre-accident earnings. Compile your income records for at least 12 months before the accident. Use bank statements, tax returns, invoices, profit‐and‐loss statements, and bookkeeping software exports to show your average weekly or monthly revenue.
- Track post-accident income. Document any reduced income after your accident. Keep detailed time logs, invoices you issued, and bank deposits. Show the gap between pre- and post-accident earnings.
- Prepare a profit & loss analysis. Have an accountant or forensic economist prepare a statement of earnings loss. This expert report quantifies net profits and overhead savings to support your claim.
- Demonstrate mitigation efforts. Montana law requires you to mitigate damages. Show any steps you took to work around your injury—reduced hours, hiring help, renting equipment—so the court sees you made reasonable efforts to reduce your losses.
- Claim future loss of earning capacity. If your injuries have long-term effects, document how they limit your ability to work at full capacity. Use vocational experts or medical reports to project future income loss.
- Meet notice and filing deadlines. If you file an insurance claim, check your policy’s notice requirements. If you file a lawsuit, remember Montana’s three-year statute of limitations for personal injury actions: Mont. Code Ann. § 27-2-202.
- Present evidence at mediation or trial. Organize all records chronologically. Include expert reports, your own affidavit, and supporting documents. Clear timelines and business records make your claim more persuasive.
Helpful Hints
- Keep digital and paper copies of every invoice, receipt, and bank statement.
- Use accounting software that timestamps transactions.
- Request written reports from medical providers about work restrictions.
- Photograph or video your workplace to show downtime or modifications.
- Obtain an independent vocational or business valuation expert early.
- Review your insurance policy for lost‐income coverage and deadlines.
Disclaimer: This article is for educational purposes and does not constitute legal advice. Consult a licensed attorney to discuss your specific situation.