Lost income claims for business owners
Your business slowed down while you recovered and you want to know if that counts.
Loss of income for a business owner is about the business’s real financial performance during your recovery, not just your personal drawings. This sits within the broader head of loss of earnings, assessed under the same rules as any other lost income claim. Proving it generally needs business records rather than a payslip.
Why this looks different from an employee’s claim
A business owner’s income is often tied up in the business rather than paid as a fixed salary. The question is whether the business earned less, or spent more on a replacement, because you could not work in it as usual.
The records that support this claim
- Profit and loss statements comparing the period before and after the accident.
- Annual tax filings, such as Borang B, for the relevant years.
- Invoices showing a drop in work completed or clients served.
- Receipts or a contract showing the cost of hiring temporary help to cover your absence.
Two common patterns this claim follows
One pattern is a drop in overall business income while you recovered, shown by comparing similar periods. Another is paying someone else to do your work, shown by the cost of that replacement. Some claims combine both where both happened.
Why it is harder to prove than an employee’s claim
Seasonal businesses, cash-heavy trades and informal bookkeeping make the comparison harder to draw. None of these stop a claim, but each usually means more months of records are needed.
What to do next
Gather six to twelve months of records from before the accident, so the comparison is not built on one unusual month. Self-employed income loss covers the wider evidence, proving your lost income lists the documents, and how compensation is worked out shows where this fits among the other heads of loss.
An independent lawyer can take on the claim and put your accounts into it. For the first contact, share general dates, location, case status and a short summary only. Keep documents private. Only after an identified lawyer or law firm contacts you and specifically asks for them should you provide that identified lawyer or firm with the accident date, where it happened, whether anyone was injured (yes/no), your business records and the police report status.
Need a lawyer to handle your injury claim?
For people seeking legal representation. For general information, please use our guides and tools.
Common questions
My business kept running while I recovered. Can I still claim?
Yes, if it earned less than it otherwise would have, or if you had to pay someone else to cover your work. The comparison is between what actually happened and what would reasonably have happened without the accident.
What if my business does not keep formal accounts?
It becomes harder, not impossible. Bank statements, invoices issued, and any tax filing you have can still build a reasonable picture, though clearer records going forward will help the rest of the claim.
Can I claim the cost of hiring someone to cover for me?
Generally yes, where you can show the cost was genuinely incurred and connected to your inability to work because of the injury, supported by a receipt, invoice or contract for that help.
How many months of records do I actually need to provide?
Enough to show a realistic comparison rather than one unusual month, often around six to twelve months before the accident, though this depends on how seasonal or variable your business income normally is.
Need a lawyer to handle your injury claim?
For people seeking legal representation. For general information, please use our guides and tools.