An entrepreneur or self-employed person may, after an injury, miss the profit that would likely have been achieved without the accident. Loss of turnover is only an indicator: saved costs, replacement costs, seasonality, growth and residual capacity all count. A persuasive claim links medical limitations to business data and a realistic scenario without the accident.
What does loss of income for business owners entail?
Business-owner loss due to injury is the net financial disadvantage arising because the owner can work less, misses assignments, must hire replacements, or the business performs differently. The loss is usually determined as lost profit, supplemented by reasonable additional expenses. Loss of turnover therefore does not automatically equal the final compensation: what matters is the net result.
Legal framework for loss of income
Lost profit constitutes pecuniary loss under Article 6:96(1) of the Dutch Civil Code (BW). If an exact calculation is not possible, the court may assess or estimate the loss. There must be a sufficiently close causal connection between the accident and the loss. Loss due to reduced earning capacity is determined by comparing the actual income situation with the likely situation without the accident. Under specific conditions, even income not reported for tax purposes may be taken into account, provided the work performed itself was lawful.
What steps should you take?
Seek immediate medical care and record symptoms and limitations in good time. Give written notice of liability to the responsible party or its insurer. Gather evidence of the accident, the parties involved and the initial effects on your business operations. Prepare an initial loss overview and update it when new costs or loss of income arise. Where liability is admitted, request advances as needed for ongoing business and private obligations.
Evidence: what do you need?
Proving business-owner loss is often more complex than for employees. Collect financial statements and tax returns for the past three to five years, current general ledgers, bank transactions and time records. Keep quotes, calendars and written cancellations of assignments, documentation of costs for substitute personnel or temporary cover, and a clear description of your duties before and after the accident.
Important time limits and limitation
As a rule, a personal injury claim becomes time-barred five years after you became aware of both the loss and the liable party. Because business-owner loss can fluctuate month by month, prompt notification and periodic updates are important. Postpone a final settlement until the medical and business outlook are sufficiently stable and clear.
