Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance tailored to your situation.
Detailed Answer
If an accident injures you in Tennessee and you work as a self-employed individual or independent contractor, you can recover compensation for your lost income as part of a personal injury claim. To build a solid case, you must gather clear documentation, accurately calculate your net loss, and file your claim before Tennessee’s one-year statute of limitations expires.
1. Identify Your Types of Lost Income
Lost self-employed income may include:
- Gross receipts from sales or services
- Net profit reflected on profit-and-loss statements
- 1099s, W-2s, or K-1s showing business earnings
2. Gather Financial Records
Collect at least three years of documentation, including:
- Business bank statements
- Tax returns (Schedule C for sole proprietors)
- Invoices, contracts, and receipts
These records establish your average earnings before the accident and support your loss calculation.
3. Calculate Your Net Loss
Subtract your normal business expenses from your gross receipts to determine net income per month. Multiply the net monthly income by the number of months you missed work. If your injuries cause lasting limitations, estimate future lost earning capacity as well.
4. Consider Expert Analysis
Hire a certified public accountant or forensic economist to prepare a loss-of-earnings report. Courts and insurers often accept these analyses as reliable proof of your economic damages.
5. Meet the Filing Deadline
Under Tennessee Code Annotated § 28-3-104, you generally have one year from the date of the accident to file a personal injury lawsuit. See the statute here: Tenn. Code Ann. § 28-3-104. Missing this deadline may bar your claim.
Helpful Hints
- Keep a daily journal documenting tasks you cannot perform and hours missed.
- Retain all communications with insurers, including emails and letters.
- Obtain and preserve medical records and photographs of your injuries.
- Track ongoing out-of-pocket expenses like transportation to medical appointments.
- Consult an attorney early to ensure proper legal procedure and deadline compliance.