FastCounsel

Disclaimer: I am not a lawyer. This article does not provide legal advice. It explains general principles under New Hampshire law to help you decide whether to talk with an attorney.

Detailed answer: How to prove lost wages as a self-employed person in New Hampshire

When you are self-employed, proving lost wages after an accident means proving lost earnings or lost business profits that resulted from the injury. Courts and insurers look for objective, verifiable records showing your pre-accident income, how the accident changed your ability to earn, and how you tried to reduce your losses.

1. Know the legal path: workerscompensation vs. personal-injury claim

If the injury happened at work or in the course of your self-employment, New HampshireWorkersCompensation law may apply. For general information on New Hampshire workerscompensation, see the New Hampshire Department of Labor: https://www.nh.gov/labor/. The workerscompensation statutes are found at RSA 281-A: see the New Hampshire RSA site for the text of the law: https://www.gencourt.state.nh.us/rsa/html/XXIII/281-A/281-A-mrg.htm.

If a third party caused your accident (a negligent driver, a business owner, a property owner, etc.), you may pursue a personal-injury claim against that party. In a personal-injury suit you try to recover past lost earnings and future loss of earning capacity; the proof requirements are similar, but the defendant and insurer differ.

2. Gather core financial documents showing pre- and post-accident income

Self-employed income is usually proven with business records rather than a paycheck. Provide as many of these as you can for at least 2-3 years before the accident and for the time after:

• Federal tax returns (Form 1040 and Schedules C, E, or K-1) for multiple prior years.
• Business profit-and-loss statements and balance sheets (prepared by you or an accountant).
• Bank statements showing deposits and cleared checks for business income.
• Invoices, receipts, estimates, contracts, purchase orders, and signed client agreements.
• 1099-MISC/NEC forms or K-1s if you receive those instead of W-2 pay.
• Accounting software reports (QuickBooks, FreshBooks, Xero) showing gross revenue and net income.

3. Document your lost work and attempts to mitigate

You must connect the accident to the loss. Keep and produce:

• Detailed daily logs or calendars noting appointments, canceled jobs, hours you could not work, and jobs you lost.
• Client communications showing canceled or postponed work and any lost contracts.
• Invoices you could not bill, quotes turned down because of your limitations, or deposits/refunds you issued.
• Records of attempts to find replacement help or subcontractors (so the court can see whether your loss could have been reduced).

4. Use medical evidence to link injury to inability to work

Medical records are crucial to prove that the injury prevented you from working or reduced your capacity. Provide:

• Emergency room notes, physician records, imaging (X-rays, MRIs), and physical therapy notes.
• Work-status forms or notes from your treating provider that state when you could not work and any permanent restrictions.
• Return-to-work forms describing limitations in hours, lifting, travel, or fine motor tasks relevant to your business.

5. Calculate lost earnings: wages vs. lost profits vs. lost earning capacity

There are three typical measures:

• Lost earnings (past): The difference between what you actually earned after the accident and what you would have earned without it. Support this with historical earnings data and the documentation above.
• Lost profits: If your work produces net profit rather than a wage, calculate lost net profits (gross revenue minus business expenses saved during the downtime). Do not double-count overhead costs that continued regardless of your absence.
• Loss of future earning capacity: For long-term or permanent injuries, an economist or vocational specialist can project the reduced ability to earn over the remainder of your working life.

6. Use experts and sworn statements when needed

Because self-employment income is less standardized than payroll, courts and insurers often expect expert analysis or sworn accounting. Useful experts include:

• A certified public accountant (CPA) to prepare or verify profit-and-loss reports and to compute lost profits and tax impacts.
• A vocational specialist or economist to project future earnings and explain how the injury changed your earning trajectory.
• Affidavits from regular clients, subcontractors, or business partners that confirm lost work or cancelled contracts.

7. Address taxes, business expenses, and overhead

Net loss calculations should account for taxes and expenses. If you did not earn revenue, you may have saved certain variable expenses (materials, subcontractors, travel). Overhead (rent, utilities) often continues and is not part of lost profits unless you can show higher or duplicative costs specifically caused by the injury.

8. Burden and standard of proof

In civil claims, you must prove damages by a preponderance of the evidence (more likely than not). For lost earnings, the judge or insurer will weigh the quality of your records, tax returns, and expert testimony. Keep contemporaneous documentation to raise the credibility of your claim.

9. Common practical steps right after an accident

1. Get medical treatment and follow doctororders. Request written work restrictions.
2. Tell clients promptly and document cancellations in writing.
3. Preserve and collect all financial records noted above.
4. Photograph injuries if visible and keep a diary of your symptoms and functional limits.
5. Talk to your accountant about how to track accident-related losses and tax effects.

10. When to consult an attorney

Consider an attorney if the claim is large, the defendant disputes causation or the value of your lost earnings, or if you face complex issues like business continuity, permanent disability, or multiple insurers. An attorney can help gather evidence, retain experts, and negotiate or litigate on your behalf.

Helpful hints

• Start the paperwork now: contemporaneous documentation is more persuasive than later reconstructions.
• Keep both personal and business bank statements; many self-employed people mix funds and these records help separate business income.
• Keep copies of canceled contracts, client emails, and appointment books showing lost opportunities.
• Record saved business expenses during downtime (materials not purchased, subcontractor fees avoided) to calculate net loss accurately.
• Ask your treating provider for explicit work restriction notes and anticipated recovery timeline in writing.
• Use a CPA to prepare a clear, signed calculation of lost profits; courts accept certified financial calculations over informal estimates.
• If you carried business interruption insurance, notify your insurer and review any coverage that could offset damages.
• Keep careful records of any money you received after the accident (e.g., partial payments from clients, disability insurance), as those will reduce your claim for lost earnings.
• Preserve digital records and backups (email, cloud accounting files, text messages). Print or export them to PDF when possible.
• When in doubt about legal strategy, seek a consultation with an attorney experienced in personal injury or workerscompensation claims in New Hampshire.