If you are self employed and injured in an accident that was not your fault, you may be entitled to claim not only for your injury, but also for the financial impact on your business. Many self‑employed people worry that lost income or business disruption will not be recoverable.

Claiming Loss of Earnings

If your injuries prevent you from working or reduce your ability to work, you can claim for loss of earnings. For self‑employed individuals, this usually takes the form of a claim for loss of net profit.

Courts will consider evidence such as:

  • Tax returns (usually the last 3 years)
  • Business accounts and profit-and-loss records for 3 years before the accident
  • Invoices, contracts, or booking records
  • Bank statements

The aim is to identify what you would have earned had the accident not occurred and compare this with what you earned during your recovery period.

Loss of Future Earnings

If your injuries have a long‑term effect on your ability to run your business, you will be able to claim for future loss of earnings. This may apply where you can no longer work at the same level, your hours are reduced, or you are forced to give up the business altogether.

Medical evidence and financial forecasts are usually required to support this part of the claim.

Business Expenses and Additional Costs

You may also be able to recover additional business-related losses directly resulting from the accident, including:

  • Lost contracts or cancelled work where this can be proven
  • Costs of adapting the business due to your injury

Mitigation of Loss

You are required to take reasonable steps to mitigate your losses. This may involve delegating tasks, returning to work in a reduced capacity, or making reasonable adjustments to how the business operates. A failure to mitigate losses can affect the level of compensation awarded.

Evidence Is Key

Claims involving self‑employed business losses can be more complex, but they are entirely valid. Good record‑keeping and expert legal advice can help ensure all losses are properly valued and recovered.

Please contact Mark Irlam, Solicitor, on 01756 799000 or [email protected] for specialist legal advice.