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

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Detailed Answer

As a self-employed professional in Virginia, you can recover compensation for lost income if another party’s negligence caused your accident. Under Va. Code § 8.01-668, you may claim damages for lost wages or diminished earning capacity. Follow these steps to document and claim your loss:

  1. Prove self-employment status. Collect business registration documents, IRS Schedule C filings, bank statements, and client invoices. See IRS Schedule C.
  2. Record pre-accident income. Use at least two years of tax returns, profit-and-loss statements, and 1099 forms.
  3. Track post-accident income loss. Maintain daily logs of hours you couldn’t work, canceled client projects, and unfulfilled contracts.
  4. Obtain professional verification. Ask an accountant or CPA to prepare a loss-of-income report showing net profit reduction.
  5. Gather supporting evidence. Include correspondence with clients, emails about project delays, and estimates for work you missed.
  6. Submit to the insurer or file suit. Present your documentation to the at-fault party’s insurance company. If they deny or undervalue your claim, you may file a lawsuit within Virginia’s two-year statute of limitations (Va. Code § 8.01-243).

Helpful Hints

  • Keep digital and paper backups of all records.
  • Use a consistent file-naming system for invoices and receipts.
  • Log daily activities with dates and estimated hours lost.
  • Consult a medical provider to link injuries with work absence.
  • Review your insurance policy to verify coverage for income loss.

Disclaimer: This article provides general information and does not constitute legal advice. Consult a qualified attorney before making decisions.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney. See full disclaimer.