Severe accidents often result in physical and psychological injuries. Sometimes, the resulting injury or disability may rob you of the ability to resume normal work duties.
And as a result, you may realize that you have so much time on your hands that you could use to do things that you otherwise could not have done while employed. One such thing is starting a business.
If you are thinking about a business after an accident but aren’t sure where to start, this guide is a good read for you.
You Can Use Your Settlement to Start a Business
If your injuries resulted from the negligent actions of another person, you might be eligible for compensation. You should be aware of your rights, especially if you live in a city with a high rate of traffic accidents.
Pennsylvania, for example, ranks 6th on states with most fatal traffic accidents – and Philadelphia is responsible for around 10,108 accidents per year. The city saw its worst surge in traffic accidents in 2019, with a 54% increase in traffic fatalities, which continued into 2020.
City officials blamed the COVID pandemic, saying that because the highways were less congested, motorists were driving faster than normal.
Under Philadelphia’s personal injuries law, persons that have suffered harm from the negligent actions or inactions of others can file a claim against the at-fault party to recover damages suffered.
Often the claims are highly contested by the at-fault party, so you will need to talk to a Philadelphia personal injury lawyer if you hope to get fair compensation for damages suffered.
The value of compensation for catastrophic injuries can be quite high, sometimes running into millions. With such figures, capital to start a business may not be a problem. But you may need to talk to a business consultant to avoid the chance of losing your money in a failed business.
After-Accident Success Story
Accidents can be a big inconvenience no matter how you look at them. But as inconvenient as they are, they can also create an opportunity for reflection and birthing new ideas that could be life-changing. A great example of success after an accident is Michael Hyatt’s life experience.
In 2003, Hyatt was named president of Thomas Nelson. One morning on his way to work, he lost his footing and fell, suffering a broken ankle. Like everyone else, he had his time of grieving, mostly thinking of how he could have done things differently.
After the grieving phase, he started focusing on the opportunities presented by his misfortune. One of the things he did with his newfound free time was start a blog which grew into a full-blown company.
You do not have to start a blog as he did, but his story proves that an accident is not the end of making money.
A Business Could Affect Your Eligibility for Long Term Disability Benefits
Individuals who suffer long-term disabilities may be eligible for up to 70 percent of their earnings before an injury and qualify for social security benefits. However, engaging in a profit-making business after an accident can change a person’s designation as disabled, affecting their ability to recover long-term disability benefits.
If you are receiving federal social security benefits, earning from your business will limit the social security benefits you can receive.
The type of policy under which you are receiving long-term disability benefits can also determine if you will continue collecting the benefits or not.
There are two main types of policies;
1. Own Occupation Policies.
If you are receiving benefits under your own occupation policies, income from your business may not affect your ability to collect long-term disability benefits. Under own occupation policies, disability is the inability to work in the same job you had before the accident. For example, suppose you were a fireman but lost the ability to use your arms. In that case, you can still collect long-term disability benefits even when you engage in another money-making activity.
2. All Occupation Policies.
Under all occupation policies, disability is the inability to engage in any meaningful money-making activity. Under this policy, if your business generates profits that exceed 70 percent of your pre-injury earnings, you automatically lose your eligibility for receiving long-term disability benefits.
But losing your eligibility is a sacrifice you may want to make as long as your business is poised to achieve great heights.