An accident never comes at a convenient time. But for self-employed individuals and entrepreneurs, an accident can hit extra hard. While employees often have continued wage payment or a safety net, your income as a self-employed person or entrepreneur can come to a standstill from one day to the next. So how do your rights to compensation work? And how is the loss of income calculated?

In this article, the personal injury lawyers at Arslan Advocaten explain what you as a self-employed person or entrepreneur can do to get your damage compensated.

Why personal injury for self-employed and entrepreneurs is so impactful

As a self-employed person, everything revolves around your commitment. You are often the engine of your business. If you are unable to work due to an accident, this has direct consequences: you miss out on assignments, fixed costs continue, and it is not always possible to immediately deploy someone else.

We often see in practice that self-employed individuals are worried about:

• the loss of assignments and turnover,

• ongoing rent of a workspace or lease contracts,

• staff that need to be paid,

• and uncertainty about the future of the business.

This makes personal injury cases for self-employed often more complex – but certainly not hopeless.

What damage can you get compensated?

The compensation for entrepreneurs and self-employed often goes beyond that of employees, because the damage posts are different. For instance:

• Loss of income – the loss of turnover or profit from business.

• Fixed costs – such as office rent, leased cars, insurance, and subscriptions.

• Additional costs – for hiring temporary workforce or outsourcing of work.

• Pension accrual – self-employed individuals often accrue little or no pension; loss of investment can also be counted.

• Smart money – for pain, sadness and limitations in your everyday life.

How is loss of income calculated?

Calculating income damage for self-employed individuals is custom work. Often, the average profit of the past years is taken into account, as evident from the annual accounts or income tax returns. Also taken into consideration are:

• the industry you work in,

• seasonal influences,

• growth expectations of your business,

• and whether you can still perform (part of) work.

A personal injury lawyer often engages a financial or occupational expert for this purpose.

Examples from practice

• The painter with his own business broke his wrist in a traffic accident and could not work for months. His missed assignments and fixed costs were fully recovered from the insurer of the counterparty.

• The self-employed consultant suffered brain damage and could not work at his previous level. An arrangement was made for the loss of earning capacity for the coming years.

• The small restaurant owner had to close temporarily after a company accident. The costs for personnel, rent, and lost turnover are included in the compensation.

Checklist for self-employed after an accident

• 📄 Collect your annual figures and tax returns for the past years.

• 💰 Keep an overview of missed assignments and fixed costs.

• 👩‍⚖️ Immediately engage a personal injury lawyer – he or she ensures that all damage items are included.

• 🧾 Keep invoices of additional costs (for example for replacement forces).

• 📅 Do not wait too long; evidence becomes more difficult over time.

Frequently asked questions (FAQ)

1. How do I prove my income loss?
By providing annual figures, tax returns, and invoices. Sometimes, an accountant or accountant can also substantiate your loss.

2. What if my business just started?
You can still get compensation. Your expectations, industry, and comparable companies are taken into account.

3. Do I have to pay tax on compensation?
Compensation for loss of income can affect tax, but this is often arranged in a way that you do not lose out on a net basis.

4. Does the insurer also pay my fixed costs?
Yes, if you can show that these could not be paid due to the accident or continued, they often fall under compensation.

Conclusion

Personal injury often has greater consequences for self-employed individuals and entrepreneurs than for employees. Fortunately, even as a self-employed or entrepreneur, you can rely on a full compensation – including loss of income, fixed costs, and smart money.

The personal injury lawyers of Arslan Advocaten have extensive experience with entrepreneur cases. We ensure that your full damage is visualized and recovered, so you can focus on your recovery and the future of your business.