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Self Employed Loss of Earnings Formula

Liz D
  • 273 posts
  • # 54041

Hi all

Does anyone out there have a formula for self employed loss of earning for insurance claim?

Not as simple as taking the previous year as invoices are not produced straight away :-(
Liz D
  • 273 posts
  • # 54067

Liz D said:

“Hi all

Does anyone out there have a formula for self employed loss of earning for insurance claim?

Not as simple as taking the previous year as invoices are not produced straight away :-(

”
Just a quick update.......

Loss adjusters have agreed to either take AVG of two years profit divided by 365* lost time or P&L profit find avg of the two quarters before and after then minus the quarter affected to find lost profit.

I'll let you know which one :-)
Liz D
  • 273 posts
  • # 55443

Still waiting .......
Liz D
  • 273 posts
  • # 69874

Hi all

I gave the loss adjusters two calculations:


1)  Loss of Earnings Based on Avg of Two Years gross Profit divided by 365 and multiplied by 10 days lost time.

2)  Loss of Earnings Based on Difference between gross profit over three quarterly current periods.

The Loss Adjusters have accepted the second calculation as the more realisistic loss.


Hope this helps in future


Liz
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