Can You Recover Lost Income If You Are Self-Employed After an Illinois Accident?

 Posted on August 12, 2026 in Personal Injury

When you work for yourself, being injured in an accident can affect more than just your health; it can impact your business as well. If you’re self-employed, you can recover lost income after an accident in Illinois when another person's negligence has kept you from working. However, while a salaried employee may have pay stubs showing missed wages, a business owner, freelancer, or independent contractor may have more difficulty proving how much income they lost. 

If an injury has kept you from working or running your business in 2026, a North Shore, IL personal injury attorney can help you document your losses and seek fair compensation.

How Do You Prove Lost Income When You Are Self-Employed in Illinois?

Illinois civil jury instructions allow injured people to seek compensation for lost earnings or profits when the evidence supports the loss. However, proving the loss of income can be challenging when you’re self-employed, since the amount you earn doesn’t always stay the same. 

To show how much income you’ve lost as a result of your injury, you may use records such as:

• Federal and state tax returns

• Business bank statements

• Invoices from before and after the accident

• Canceled contracts or appointments

• Records of payments from regular customers

• Medical records showing why you could not work

Past records can be especially helpful if your income changes with the seasons. For example, a landscaper hurt in June may earn much more during the summer than during the winter. Looking at the same months from past years can give a clearer picture of what the landscaper likely would have earned.

Can Lost Business Profits Be Part of an Illinois Injury Claim?

The source of the lost profits matters. A business can make money from the owner's work, employees' work, money invested in the company, or a mix of these sources. Not every drop in business profits is the same as the owner's lost income.

Illinois courts will look at whether the lost profits came from the injured person's own work. This can be important for a small business owner who provides most of the services that bring money into the business.

For example, a self-employed contractor who does most jobs alone may be unable to work for three months after a car accident. Canceled contracts and past invoices could help show what he would have earned during that time. 

The situation may be different if the contractor has several employees who keep completing jobs while he recovers. The business may still make money even though the owner cannot work. An attorney can review the records to separate the owner's lost income from other changes in business profits.

What If Your Injury Affects How Much You Can Earn in the Future?

Some injuries affect income long after a person returns to work. Illinois law 735 ILCS 5/2-1115.2  may allow compensation when an injury reduces a person's ability to earn money in the future. This is known as lost earning capacity.

This issue often comes up when a person's job depends on physical skills. A contractor with a serious back injury may return to work but be unable to lift heavy materials, while a hairstylist with a lasting hand injury may have to work fewer hours. In both cases, the person may earn less even after returning to work.

Past income records can help show what the person earned before the accident, and medical records can show any lasting limits caused by the injury. In some cases, financial or job professionals may also help estimate how those limits could affect future income.

How Long Do You Have to File an Illinois Personal Injury Claim?

Illinois generally gives an injured person two years to file a personal injury lawsuit. Under 735 ILCS 5/13-202, that two-year period usually begins when the injury occurs. Different deadlines or exceptions can apply in some cases.

Self-employed people should start saving financial records well before that deadline. Keeping these records can make it easier to show how the accident affected your income. 

Contact a North Shore, IL Personal Injury Attorney for a Free Consultation

Losing income can put added pressure on a self-employed person who is already recovering from an injury. The lawyers at Gruzmark Law, Ltd. can review your business records, explain what losses may be part of your claim, and help you seek compensation from the party responsible for your accident. We also speak Russian and Mongolian. Contact our Northbrook, IL personal injury lawyers at 847-729-7660 to schedule a free consultation.