How to Document and Claim Lost Self-Employed Income After an Accident in NY

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Always consult a qualified attorney about your specific situation.

Detailed Answer

When you operate as a self-employed individual in New York and suffer an accident due to another party’s negligence, you may recover damages for lost income through a personal injury claim. Under New York Civil Practice Law & Rules (CPLR) § 504, “loss of earnings from employment” qualifies as an item in a damage award. To build a strong claim, follow these steps:

1. Gather Financial Records: Compile tax returns (Form 1040 with Schedule C or Schedule F), bank statements, invoices, receipts, and profit‐and‐loss statements for at least two years before the accident and all records after the accident date.
2. Create a Profit & Loss Report: Use accounting software or work with a Certified Public Accountant to generate a detailed profit & loss report. Highlight trends in gross receipts, expenses, and net income. This report helps establish your typical earning capacity.
3. Document Hours and Rates: Keep a daily work log showing hours typically billed and your standard rate. Note any fluctuations over time. If your business has seasonal peaks, illustrate how the accident interrupted that cycle.
4. Record Medical Restrictions: Obtain a doctor’s note detailing any work restrictions and dates you could not work. This connects your inability to earn to your injuries.
5. Calculate Lost Income: Multiply your average hourly or daily rate by the number of work hours missed. Add any projected future losses if your recovery delays your return to full capacity.
6. Retain Expert Testimony: In complex cases, an economist or vocational expert can project your future lost earning capacity. Their report lends credibility to your damages calculation.
7. File Your Claim: File a negligence lawsuit in the appropriate New York court before the statute of limitations expires, typically three years from the date of the accident (CPLR § 214). Link: https://www.nysenate.gov/legislation/laws/CVP/214
8. Submit Exhibits: Attach your financial records, expert reports, medical documentation, and a computation of damages to support your lost income claim under CPLR § 504. Link: https://www.nysenate.gov/legislation/laws/CVP/504

Helpful Hints

• Start record-keeping immediately after the accident to avoid gaps.
• Use cloud storage for all documents to prevent loss and ensure easy sharing with your attorney.
• Keep a personal diary of how injuries affected your daily work routine.
• Review your insurance policies (e.g., business interruption) for potential short-term relief.
• Consult a personal injury attorney early to discuss strategy and deadlines.