For trucking companies that operate specialized equipment, downtime after an accident can severely impact their business and earnings. According to an attorney, you are entitled to compensation for this downtime.
by Kelsea Eckert, Trucking Attorney, Eckert & Associates
September 20, 2024
“Fred,” a knowledgeable owner of a heavy-haul trucking operation, has earned a strong reputation for transporting oversized loads. His fleet includes specialized trailers, like an extra-long extendable step-deck, crucial for moving large machinery such as excavators.
In May, Fred accepted a contract to transport a large excavator across the Midwest, a task that turned into a significant challenge.
A young driver in a Mustang changed lanes and crashed into Fred’s trailer. The police deemed the Mustang driver at fault, and thankfully, neither Fred nor the excavator suffered harm.
However, the damage to Fred’s step-deck trailer was extensive enough to make it undriveable per federal Department of Transportation standards.
Financial Consequences of Downtime for Truckers After an Accident
Fred quickly filed an insurance claim to cover repairs and cargo transport costs. While his insurance company acted promptly, repairs took time, leading to a considerable loss of income.
For heavy-haul truckers like Fred, being unable to operate due to equipment damage can have dire financial consequences.
Finding a replacement for Fred’s specialized trailer proved nearly impossible, leaving him unable to earn revenue.
In such situations, understanding an owner-operator or trucking fleet’s rights to downtime payments is essential.
Addressing Losses: A Challenge for Heavy Haulers
Fred was proactive, taking steps to hasten repairs and find a rental trailer. He contacted rental companies in the area, asking about similar extendable step-deck trailers. Given the specialized nature of his equipment, he anticipated negative responses.
Despite this, Fred carefully documented his attempts to mitigate losses, which proved beneficial later when interacting with the Mustang driver’s insurance company.
When Fred submitted a downtime claim to the Mustang driver’s insurance, the adjuster sought proof of his mitigation efforts. In the insurance industry, mitigation refers to actions aimed at reducing losses.
By sharing the rejection letters from rental companies, Fred effectively demonstrated that he had made significant efforts to find an equivalent trailer, ultimately proving that no alternatives were available.
This documentation was key in supporting his claim for downtime loss reimbursement.
Understand Downtime Payments: Key Information for Truckers
Downtime payments from the responsible party aim to compensate truckers for lost income while equipment remains out of service due to an accident.
This compensation is particularly important for heavy-haul operators who frequently depend on specialized trailers and equipment that are not easily rented or replaced.
Securing payment for lost income can be complex, as insurance companies often dispute these claims, contending that the claimant didn’t do enough to lessen the loss or that the downtime was excessive.
Thus, it’s crucial for truckers to meticulously document all efforts to repair or replace damaged equipment and maintain detailed records of income lost during the downtime.
In Fred’s case, his written documentation of rental attempts assisted him in overcoming the insurance adjuster’s challenges and obtaining payment for the duration his trailer was out of commission.
Does Your Insurance Safeguard Your Trucking Business?
Heavy-haul trucking is a high-risk business, and even a few days of downtime can create significant financial strain.
Although Fred successfully recovered his lost income from the at-fault driver’s insurance, the experience underscored the importance of having comprehensive insurance coverage that includes downtime provisions.
Had the Mustang possessed inadequate insurance, Uninsured Motorist Property Damage and Underinsured Motorist Property Damage could have been essential coverages for Fred’s policy, potentially covering considerable downtime losses.
Truckers should work closely with their insurance agents to ensure they have adequate protections in place to address potential accidents. Proper coverage can bridge the financial gap during repairs and help maintain operations during unexpected events.
While submitting a claim on one’s own policy may be undesirable, it is sometimes necessary.
Be Prepared and Stay Protected
Fred’s situation offers valuable lessons for heavy-haul truckers and those in the trucking industry.
Understanding your rights regarding downtime payments from the at-fault party and ensuring sufficient insurance coverage are crucial steps in safeguarding your business.
In an industry where specialized equipment is often irreplaceable, downtime can become financially burdensome very quickly. By being prepared, prioritizing safety, and collaborating closely with insurance agents and attorneys, you can confidently navigate these challenges and keep your business on the move.
Stay safe, remain insured, and know your rights concerning downtime payments.
About the Author: Kelsea Eckert is a trucking attorney at Eckert & Associates, dedicated to helping clients resolve insurance and downtime claims. A member of the trucking community, she has practiced law since 1988 and frequently speaks at trade shows, podcasts, and radio shows about transportation issues.
This guest article was authored and edited to meet Heavy Duty Trucking’s editorial standards and provide useful insights to our readers. The opinions expressed may not reflect those of HDT.
