Disclaimer: This article provides general information and does not constitute legal advice.
Detailed Answer
When you suffer an accident in New Jersey that prevents you from working in your business, you can pursue lost self-employed income through Personal Injury Protection (PIP) benefits and a tort claim. Follow these steps to document and claim your losses.
1. Review PIP Benefits
New Jersey requires PIP coverage under the Auto Insurance Law. PIP reimburses 85% of your net lost income up to $185 per week. See N.J. Stat. § 39:6A-4.
2. Gather Business Records
Collect documents showing your normal earnings before and after the accident:
- Tax returns (last 2–3 years)
- Profit-and-loss statements
- Bank and credit card statements
- Invoices and receipts
- Accounting software reports
3. Calculate Net Income
Self-employed individuals recover net, not gross, income. Subtract ordinary business expenses (rent, supplies, subcontractors) from gross receipts. Use consistent accounting methods to avoid challenges by insurers or opposing counsel.
4. Create a Work-Loss Log
Maintain a daily journal documenting:
- Dates you missed work
- Tasks you couldn’t perform
- Appointments canceled or delayed
This log supports the period and extent of your disability.
5. Obtain Expert Support
Consider hiring a forensic accountant or business valuation expert. They can prepare a detailed report reconciling your historical earnings, projected income, and actual losses. Expert testimony often strengthens your claim.
6. Submit Your PIP Claim
File a PIP claim with your own insurer promptly. Attach your lost-income calculation, work-loss log, and supporting records. Keep copies of all correspondence.
7. Preserve Tort Claim Rights
If another party’s negligence caused your accident, you may pursue additional damages beyond PIP. New Jersey imposes a two-year statute of limitations for personal injury claims. See N.J. Stat. § 2A:14-2. File suit or request a trial within this period to avoid forfeiture of rights.
8. Negotiate or Litigate
After submitting your demand letter with documentation, insurers typically respond with an offer. Evaluate settlement proposals carefully. If negotiations stall, you may need to file a lawsuit and seek discovery to obtain additional evidence from the defendant.
Helpful Hints
- Organize records chronologically to simplify review.
- Keep digital backups of all documents.
- Maintain a separate calendar for accident-related appointments and missed work.
- Consult a personal injury attorney early to preserve evidence and meet deadlines.
- Track out-of-pocket expenses (transportation, medical supplies).
- Review your insurance declarations page for PIP limits.
- Consider mediation to resolve disputes without protracted litigation.