If you run your own business—or drive for apps like Uber, DoorDash, or Instacart—“missed work” isn’t as simple as a pay stub. Kentucky still lets you recover wage loss; you just have to show it the right way: with clean books, objective proof, and Kentucky-specific rules for no-fault (PIP) and fault-based claims.
Below is the exact framework we use at Morrin Law Office to prove short-term PIP wage loss and full tort wage loss for self-employed and gig workers, including what documents to collect and how we model your numbers.
Two lanes of recovery (and how they differ)
1) Short-term PIP (no-fault) wage loss
Under Kentucky’s MVRA, Basic Reparation Benefits reimburse net economic loss from a motor-vehicle injury—including work loss—up to your PIP limit (commonly $10,000 unless you bought more). The statute defines payment for net loss (not gross) and sets mechanics for payment.
- Weekly cap: PIP payments for work loss (combined with replacement services) are capped at $200/week under basic benefits, unless you purchased added reparation benefits.
- Timing & interest: PIP must be paid monthly as loss accrues and is overdue at 30 days after the insurer has reasonable proof. Overdue benefits accrue 12% interest—or 18% if the delay lacked a reasonable foundation.
2) Full tort wage loss (and future loss)
Once you’re outside no-fault, you can claim full wage loss and longer-term diminished earning capacity from the at-fault party (PIP is reconciled later). Kentucky’s tort timing is nuanced: a tort action generally must be filed within two years of the injury/death or the last PIP payment, whichever is later.
The self-employed math: “net,” not “gross”
Insurance adjusters often ask for gross deposits. That’s wrong for PIP and unpersuasive in tort. Your credible number is net income—revenue minus ordinary and necessary business expenses—anchored to the same documents you use for taxes (Schedule C/K-1), books (P&L), and platform reports. IRS small-business guidance and gig-economy publications mirror this framework
Rule of thumb:
PIP pays net work loss (subject to the weekly cap); tort can recover the full proven loss (past + future) with the right expert proof.
What we collect (by worker type)
Gig/app drivers & couriers (Uber, Lyft, DoorDash, Instacart, Amazon Flex)
- Platform earnings exports (weekly/monthly), delivery logs, and driver scorecards.
- Mileage/expense records (fuel, maintenance, insurance, fees) to compute net.
- Bank statements tying payouts to revenue.
- Calendar of missed days/hours + doctor’s work restrictions establishing why you couldn’t drive.
- If relevant: route density or algorithm screenshots (to show seasonality/surge you missed).
Sole proprietors & single-member LLCs (service pros, creatives, trades)
- Schedule C (or last filed return), P&L, invoices/contracts, AR aging, and bank statements.
- Cancellations/reschedules tied to your injury (emails, DMs).
- Variable cost detail (don’t claim gross receipts).
- Work logs (calendars, CRMs) and doctor restrictions showing you couldn’t perform essential tasks.
Partnerships/S-corps
- K-1s/W-2 officer comp, payroll records, owner draws history, P&L, and board/manager emails documenting role limits post-injury.
How we actually compute loss (clean, defensible models)
We use one—or blend—of the following models depending on your business:
- Before/After Window
Compare pre-injury net income run-rate (e.g., 3–12 months) to the post-injury window while restrictions apply, adjusting for known seasonality (holidays, Derby Week, Rupp Arena events, etc.). Pair with calendars and medical notes to link dates to functional limits. - But-For Forecast
Forecast what revenue would have been but for the crash using prior years, booking calendars/pipelines, and trendlines (e.g., YoY growth). Subtract actual post-injury net; the delta is loss. - Capacity Constraint
When you can work some but not full duty (e.g., no ladders, no night driving, screen-time limits), apply your pre-injury utilization/throughput to show the percentage of work—and profit—you had to decline. - Platform-Cohort Comparison
For rideshare/delivery, compare your post-injury period to platform-provided market averages (if available) or your own historical surge periods to rebut “slow season” arguments.
For early cash flow, we still submit a PIP package—net numbers only—knowing the $200/week cap limits recovery there. Tort picks up the rest with the same proof set.
Documentation checklist (copy/paste into your intake)
- Tax docs: Last 2 years returns (Schedule C/K-1) or most recent filed; current-year P&L and balance sheet.
- Revenue proof: Invoices, contracts, platform earnings exports, bank statements tying deposits to work.
- Cost proof: Fuel, parts, supplies, platform/service fees, insurance—so we can calculate net.
- Missed-work proof: Doctor restrictions, PT schedules, and a simple missed-time calendar (dates/hours).
- Opportunity loss: Canceled gigs, waitlist emails, DMs showing work you turned down.
- For gig drivers: Mileage logs, app settings, acceptance/completion stats, and any safety or deactivation notices tied to the crash.
- Identity & entity: EIN/LLC docs (if applicable); proof of role (what only you can do).
Common pushbacks (and how we answer)
- “Show me your pay stubs.” Self-employed don’t have them; we present tax-grade financials (Schedule C/K-1 + P&L + bank corroboration).
- “That’s gross—expenses don’t count.” PIP and sound tort practice use net, not gross. We supply expense detail and IRS-consistent categories.
- “It was a slow season.” We counter with seasonal baselines, cohort/market data, and pre-booked work you lost.
- “You could have hired help.” If reasonable, we show mitigation efforts and the net effect (replacement labor vs. lost margin).
Deadlines & logistics (don’t miss these)
- PIP payments: monthly as loss accrues; overdue at 30 days after reasonable proof → 12%/18% interest.
- Tort filing: typically two years from injury/death or the last PIP payment (whichever is later). Calendar it early.
How Morrin Law Office helps self-employed & gig workers
- Turn on PIP fast with a clean net-income packet (we prep the math and enforce the 30-day rule for interest if needed).
- Build the tort case with before/after and but-for models, seasonality controls, and—if limits persist—diminished earning capacity using vocational and economic experts.
- Platform fluency: Uber/Lyft/DoorDash/Instacart/Amazon Flex exports, acceptance/completion stats, and GPS logs—we line them up with your medical timeline.
- No upfront fees: Free consult; contingency fee (we’re paid only if we recover).
Drop a bold Contact CTA here and link to Missed Work After a Serious Crash and Proving Diminished Earning Capacity.
FAQs
Does PIP replace my full business income?
No. PIP pays net work loss and is capped at $200/week under basic benefits (unless you bought added coverage). Tort claims seek the balance.
—
What counts as “reasonable proof” for PIP?
A complete packet: returns/Schedule C or K-1, YTD P&L, bank statements, platform exports, and a missed-time calendar tied to doctor restrictions. Once received, the insurer has 30 days to pay before interest applies.
—
If I’m salaried at my own S-corp, do I use W-2 or draws?
Both can matter. We document W-2 officer pay for immediate wage loss and show owner profit loss (net) with books and K-1s to capture the full business impact (in tort).
—
What if I had growth momentum before the crash?
We use your booking pipeline and historical trend to build a but-for forecast, then validate against seasonality and market data.
References & Further Reading
- KRS 304.39-020 — MVRA definitions (PIP/BRB reimburse net economic loss). Legislative Research Commission
- KRS 304.39-130 — Work-loss weekly cap ($200/week) under basic PIP. Legislative Research Commission+2Justia Law
- KRS 304.39-210 — PIP payment timing; overdue at 30 days; 12%/18% interest for delay. Legislative Research Commission
- KRS 304.39-230 — Tort limitations; two years from injury/death or last PIP payment (whichever later). Legislative Research Commission
- IRS Pub. 334 — Small-business tax guide (Schedule C; income/expense categories). IRS
- IRS Self-Employed & Gig Resources — central page linking to Schedule C/SE, and gig-economy guidance. IRS
Morrin Law Office MVRA/PIP Guide — client-friendly overview of Kentucky PIP rules and examples. Morrin Law Office
0 Comments