An accident is never convenient. But for self-employed persons and entrepreneurs, an accident can be especially hard-hitting. While employees often have continued salary payments or a safety net, your income as a freelancer or entrepreneur can come to a standstill overnight. What are 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 person or entrepreneur can do to obtain compensation for your damage.
Why personal injury is so impactful for freelancers and entrepreneurs
As a self-employed person, everything revolves around your effort. You are often the driving force behind your business. If you are unable to work due to an accident, the consequences are immediate: assignments are missed, fixed costs continue, and it is not always possible to bring in a replacement straight away.
In practice, we regularly see self-employed persons who are concerned about:
the loss of assignments and revenue,
ongoing rent for workspace or lease contracts,
staff that still needs to be paid,
and uncertainty about the future of the business.
This makes personal injury cases for freelancers more complex — but certainly not hopeless.
What damage can you claim compensation for?
Compensation for entrepreneurs and freelancers often goes further than for employees, because the types of damage differ. Consider, for example:
Loss of income — the loss of revenue or business profit.
Fixed costs — such as office rent, lease cars, insurance, and subscriptions.
Additional costs — for hiring temporary staff or outsourcing work.
Pension accrual — self-employed persons often build up little or no pension; loss of contributions can also count.
Non-pecuniary damages — for pain, suffering, and limitations in daily life.
How is loss of income calculated?
Calculating income loss for self-employed persons is a tailor-made process. Often, the average profit of previous years is examined, as shown in the annual accounts or income tax returns. The following factors are also taken into account:
the industry in which you work,
seasonal influences,
growth expectations for your business,
and whether you can still (partially) carry out work.
A personal injury lawyer often engages a financial expert 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 other party.
The freelance consultant sustained brain injury and could no longer work at his former level. A settlement was reached for the loss of earning capacity for the coming years.
The small hospitality entrepreneur had to temporarily close after a workplace accident. The costs for staff, rent, and lost revenue were included in the compensation.
Checklist for freelancers after an accident
Collect your annual figures and tax returns from previous years.
Keep a record of missed assignments and fixed costs.
Engage a personal injury lawyer immediately — they will ensure that all items of damage are included.
Retain invoices for additional costs (for example, for replacement staff).
Do not wait too long; evidence becomes more difficult over time.
Frequently asked questions (FAQ)
1. How do I prove my loss of income?
By submitting annual figures, tax returns, and invoices. In some cases, an accountant can also substantiate your loss.
2. What if my business has only just started?
You can still receive compensation. Your expectations, industry, and comparable businesses will be considered.
3. Do I have to pay tax on the compensation?
Compensation for loss of income may affect taxation, but this is usually arranged so that you do not lose out in net terms.
4. Does the insurer also pay my fixed costs?
Yes, if you can demonstrate that these could not be paid due to the accident or continued to accrue, they are often included in the compensation.
Conclusion
Personal injury often has greater consequences for self-employed persons and entrepreneurs than for employees. Fortunately, as a freelancer or entrepreneur, you too can count on full compensation — including loss of income, fixed costs, and non-pecuniary damages.
The personal injury lawyers of Arslan Advocaten have extensive experience with entrepreneurial cases. We ensure that your full damage is identified and recovered, so that you can focus on your recovery and the future of your business.