An accident never comes at a convenient time. But for the self-employed and entrepreneurs, an accident can hit especially hard. Whereas employees often have continued salary payment or a safety net, your income as a self-employed professional or entrepreneur can come to a halt overnight. What about your rights to compensation? And how is the loss of income calculated?

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

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

As a self-employed professional, everything revolves around your efforts. You are often the engine of your business. If you are sidelined by an accident, the consequences are immediate: assignments fall through, fixed costs continue, and it is not always possible to bring someone else in right away.

In practice, we regularly see that self-employed people worry about:

• the loss of assignments and revenue,

• ongoing rent for a workspace or lease contracts,

• employees who need to be paid,

• and uncertainty about the future of the company.

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

What damages can you be compensated for?

Compensation for entrepreneurs and self-employed workers often goes further than for employees, because the categories of damages are different. For example:

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

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

• Additional costs – for hiring temporary staff or outsourcing work.

• Pension accrual – the self-employed often build little or no pension; loss of contributions may also be taken into account.

• Pain and suffering compensation – for pain, distress and limitations in your daily life.

How is loss of income calculated?

Calculating income loss among the self-employed is custom work. Often, the average profit of the past years is considered, as shown by the annual accounts or income tax returns. Account is also taken of:

• the industry you work in,

• seasonal effects,

• your company’s growth expectations,

• and whether you can still perform work (partially).

A personal injury lawyer often brings in a financial expert or vocational expert for this.

Examples from practice

• The painter with his own business broke his wrist in a traffic accident and was unable to work for months. His missed assignments and fixed expenses were fully recovered from the other party’s insurer.

• The freelance consultant suffered brain injury and could no longer work at his previous level. An arrangement was made for the loss of earning capacity for the coming years.

• The small hospitality business owner had to temporarily close after a workplace accident. The costs for staff, rent, and lost revenue have been included in the compensation.

Checklist for self-employed people after an accident

• 📄 Gather your annual figures and tax returns from the past years.

• 💰 Keep a record of lost assignments and fixed expenses.

• 👩‍⚖️ Engage a personal injury lawyer immediately – they will ensure that all damage items are included.

• 🧾 Keep invoices for additional costs (for example, for replacement staff).

• 📅 Don’t wait too long; evidence becomes harder to obtain over time.

Frequently Asked Questions (FAQ)

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

2. What if my company has just started?
You can still receive compensation. They will look at your projections, industry, and comparable companies.

3. Do I have to pay tax on the compensation?
Compensation for loss of income can affect taxes, but it is often arranged so that you do not end up worse off after tax.

4. Does the insurer also pay my fixed expenses?
Yes, if you can show that due to the accident they could not be paid or continued to accrue, they are often covered by the compensation.

Conclusion

Personal injury often has greater consequences for the self-employed and entrepreneurs than for employees. Fortunately, as a freelancer or entrepreneur you can also count on full compensation – including loss of income, fixed expenses, and pain and suffering.

The personal injury lawyers at Arslan Advocaten have extensive experience with business owners’ cases. We ensure that all of your damages are fully assessed and recovered, so that you can focus on your recovery and the future of your business.