Wage Loss Claims

2-19-07

            The title of this topic seems fairly straight forward, but in personal injury claims and litigation, wage loss claims are often greeted with skepticism and extra scrutiny by claims adjusters and their lawyers.   One would think that presenting a wage loss claim would be relatively simple.   Tally the amount of time missed due to the injury and multiple by the rate of pay.  

            However, wage loss claims are just not that simple.   Insurers often demand more proof.  They want an itemization of wage loss, with rate of pay, preferably signed by your supervisor.  If claims for overtime compensation are being presented, they'll seek additional proof.

            People who are self-employed confront additional hurdles to recovery.   It is fairly common to review wage loss claims of people who are self-employed where their business really doesn't generate much of an annual profit, but the value to their personal line is huge.  For example, someone working out of their home frequently obtains numerous benefits:  health insurance, rent/mortgage, utilities, entertainment, supplies, vehicle, etc.   But, at year end, it is not uncommon to see a fairly small or zero profit and very minimal compensation paid to him or her.   These types of wage loss claims frequently include having an accountant assist in reviewing the claim and presenting a report to document the claim to the adjuster or in litigation.

            Individuals, who work in trades involving gratuities/tips, confront the difficulties associated with their personal income reporting for tax purposes.   It is not unusual to learn of individuals working in occupations where a significant portion of their income is derived from gratuities.   However, unless one seeks to risk exposing their past income reporting practices in a public forum, this can present a very difficult situation.

            Wage loss claims are not as simple as they may appear.  It is always wise to consult an experienced personal injury attorney to counsel you and to present your wage loss claim as best possible.  This will greatly assist in his or her efforts to obtain the best possible recovery for you from the insurance company.

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