Michigan self-employed wage loss can be difficult to document after a car accident. If you work for yourself, you may have no employer to verify missed shifts and no regular paycheck showing exactly what you lost.
Instead, your income may come from customer appointments, contracts, seasonal projects, or invoices paid weeks after the work was completed.
That does not make the loss unimportant. It makes clear documentation especially useful when evaluating a possible claim.
Can a Self-Employed Person Qualify for Michigan Work-Loss Benefits?
Self-employment does not automatically rule out a possible no-fault work-loss claim. Eligibility and the amount payable depend on the applicable law, coverage, and evidence.
Michigan’s civil jury instructions addressing no-fault benefits describe work loss in terms of income from work the injured person would have performed during the first three years after the accident if the injury had not occurred. Benefits are subject to statutory calculations and limits.
For a self-employed person, the important questions include what work the injury prevented and how that affected income.
Keller & Keller’s Michigan no-fault insurance guide provides background on the larger insurance system. This article focuses on building a useful record when there is no conventional paycheck.
Connect Your Medical Restrictions to Your Actual Work
Start by explaining your work duties accurately to your healthcare provider.
A contractor may need to lift materials or climb ladders. A hairstylist may spend hours standing. A consultant may need to drive, concentrate, and work at a screen.
A general statement that you “could not work” may leave unanswered questions. Records describing your restrictions and their duration can help show why particular duties became difficult or impossible.
Follow your provider’s recommendations. If your condition changes, discuss the change rather than assuming an earlier restriction still describes your ability to work.
Gather Records Showing Your Income Before the Crash
Useful records may include:
- Tax returns and relevant schedules.
- Profit-and-loss statements.
- Business bank statements.
- Invoices and payment histories.
- Signed contracts and confirmed bookings.
- Appointment calendars.
- Records showing ordinary business expenses.
Several records may be needed to explain the same period. A bank deposit alone may not show when the work occurred or whether the money represents income from your own labor.
Keep original records and avoid changing past entries. If a record needs explanation, add a separate, dated note.
Document the Work You Actually Missed
Create a simple record of canceled or reduced work after the collision.
For each entry, note the date, customer or project, work you expected to perform, and what happened instead. Preserve messages confirming cancellations or postponed appointments.
Consider a self-employed painter with a signed contract for a project scheduled shortly after the crash. The contract, customer correspondence, medical restrictions, and business records can help explain the claimed loss.
However, the contract’s total price is not automatically the amount recoverable. Expenses, work completed by others, and the circumstances of the claim may affect the analysis.
Why Revenue and Lost Income Are Different Questions
A business can continue receiving money while its owner is injured. For example, customers may pay old invoices or employees may complete existing jobs.
Conversely, a temporary drop in deposits may reflect ordinary payment timing rather than work the injury prevented.
This is why gross sales alone may not tell the full story. Business expenses, personal work, continuing operations, and business structure can all require closer review.
If you paid someone to help keep the business running, retain those invoices and explain the work performed. Do not assume every replacement expense is reimbursable as a work-loss benefit.
Account for Seasonal and Irregular Work
A business with seasonal demand may need more context than a single month’s statement.
Preserve records from comparable periods and confirmed work scheduled before the crash. Distinguish booked projects from hoped-for opportunities.
For instance, an accepted customer quote is different evidence from a general expectation that autumn would be busy. Both may explain your business, but they should not be presented as the same thing.
Keller & Keller’s published guide to Michigan car accident documents to keep offers a broader checklist for your claim file.
What If the Insurer Requests More Information?
Keep the request, your response, and proof of submission. Ask the insurer to identify what information it needs and why.
If benefits are delayed or denied, preserve the written explanation. An attorney can review the dispute and identify the deadlines that apply. Do not assume you can wait until your business records are perfectly organized before seeking help.
Contact Keller & Keller’s Michigan Team
Michigan self-employed wage loss claims require attention to both the injury and the business records explaining its financial effect.
Contact Keller & Keller’s St. Joseph office for a free case evaluation. Bring the records you have and your questions about missed work, insurance requests, or a denial.
This article provides general information and is not legal advice. Eligibility, benefit calculations, and deadlines depend on your circumstances.
