Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
After an accident in Vermont, self-employed individuals can recover lost income as part of their personal injury claim or through auto insurance Personal Injury Protection (PIP) benefits if the accident involved a motor vehicle.
1. Establish Your Pre-Accident Income Baseline
Gather the following records for at least one year before the accident date:
- Federal and Vermont state tax returns.
- Profit and loss statements or ledgers.
- Bank statements showing business deposits.
- Invoices and client contracts.
2. Document Post-Accident Business Activity
Track all work you missed or performed at reduced capacity:
- Daily or weekly work logs noting hours lost.
- Emails or communications with clients about rescheduling or cancellations.
- Receipts for any expenses you still incurred.
3. Calculate Net Loss
Compute your lost earnings by comparing pre- and post-accident net income. Subtract fixed business expenses to isolate actual lost profits. Consider hiring an accountant or forensic economist for complex calculations.
4. Claim Through Personal Injury Lawsuit
If you file a tort claim against a negligent party, list lost self-employed income under economic damages. Vermont law gives you three years from the accident date to file a personal injury suit. See Vt. Stat. tit. 12, § 511: legislature.vermont.gov/statutes/section/12/089/00511.
5. Claim Through Auto Insurance PIP
If a motor vehicle caused your injury, file a PIP claim under Vermont law. PIP covers reasonable lost income up to policy limits. See Vt. Stat. tit. 23, § 1137: legislature.vermont.gov/statutes/section/23/019/01137.
6. Submit a Demand Package
Send your insurer or the negligent party’s carrier a demand package including:
- A cover letter summarizing your claim.
- Itemized loss of income calculation.
- Supporting financial documents.
- Medical records and bills for your accident-related treatment.
Helpful Hints
- Keep a contemporaneous journal detailing work you missed and business impacts.
- Get written statements from clients confirming lost projects.
- Consult an accountant early to organize your records correctly.
- Review your insurance policy for PIP limits and deadlines.
- Act promptly: collect documents before they become unavailable.