How to Document and Claim Lost Self-Employed Income After an Accident in New Hampshire
This article explains how a self-employed individual in New Hampshire can document and recover lost income following an accident. This is not legal advice. Always consult a qualified attorney for advice tailored to your situation.
Detailed Answer
1. Understand Lost Income Under New Hampshire Law
Under New Hampshire’s personal injury statute, RSA 507:7, a claimant may recover compensation for “loss of earnings” and “loss of prospective net income.” View the statute here: RSA 507:7. This covers income you would have earned from your business if not for the injury.
2. Gather Comprehensive Business Records
- Tax Returns: Federal and state returns for the past 2–3 years.
- Profit & Loss Statements: Monthly or quarterly P&L reports from accounting software.
- Invoices and Receipts: Bills issued, client payments, and expense receipts.
- Bank Statements: Business account statements showing deposits and withdrawals.
- Ledgers and Journals: Manual or digital logs of daily transactions.
3. Calculate Your Actual and Projected Lost Income
Use your historical records to establish baseline earnings. Then:
- Compare the period before and after the accident.
- Account for seasonal fluctuations and market trends.
- Retain an accountant or forensic economist to prepare a detailed lost-income report.
4. Document the Connection Between Injury and Income Loss
- Medical Records: Show how injuries prevented you from working.
- Doctor’s Statements: Confirm your inability to perform business activities.
- Photographic or Video Evidence: Illustrate mobility limitations or workspace damage.
5. Submit a Claim or Demand Letter
Prepare a demand package for the at-fault party’s insurer:
- A cover letter summarizing your claim.
- Itemized lost-income calculation with supporting documents.
- Copies of medical records and expert reports.
6. Be Aware of Time Limits
Under RSA 508:4, the statute of limitations for personal injury claims in New Hampshire is three years from the date of the accident. See RSA 508:4.
Helpful Hints
- Keep contemporaneous records: Update ledgers and journals daily.
- Photocopy originals: Preserve records in digital format.
- Track non-economic impacts: Document pain, stress, and reduced quality of life.
- Maintain a diary: Note hours you could not work and tasks you missed.
- Consult professionals early: An accountant and attorney can streamline evidence gathering.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a licensed attorney to address your specific circumstances.