Give Your Business the Gift of Downtime Dollars!

By: Kelsea Eckert, Transportation Attorney

Here we are in the final weeks of 2021, filled with holidays and gift-giving. One classic song says it’s the most wonderful time of the year; and I agree! While most people might think of gifts like cologne, jewelry and socks, what about gifts for your business? Your company would surely appreciate the gift of undiscovered money. 

Gifts of money are often found in past claims, filed away somewhere or not pursued at all. What if you took a bit of time this holiday season, or in the first quarter of the new year, to find shiny jewels of undiscovered dollars?  You might be pleased with what you find!

Collect Downtime/Loss of Use of your Equipment from the At Fault Party

When your heavy equipment is damaged and out of service due to another driver’s fault, losses mount up quickly. It can put a business upside down quickly. Many insurance companies and self-insured companies, in our experience, say they don’t have to pay for your lost income. That’s just not true. Case law allows for reimbursement of downtime losses in almost all states in the US. And it’s not the amount calculated with some precomputed formula or industry average like some adjusters like to say. It’s typically the actual financial losses from your actual equipment.

If you are able to rent a replacement truck after an accident, ask the adverse party for reimbursement of the rental fee and related expenses. If you can’t rent a truck, show them why it’s not possible.  Even though your truck and driver are innocent parties, you must mitigate (lessen) your company’s losses as best you can.  

Those of us in the transportation industry know how tough it is to find new, used, and rental equipment currently. In addition, the time delays on repairs have skyrocketed because of the shortage of truck and other heavy equipment parts.  Adverse insurance companies and their adjusters may not be aware of this current dilemma. You must prove it. Therefore, be sure to document every attempt to rent, as it will be vital to proving your mitigation.

Owner operators, especially, are often unable to mitigate their losses because of specialized equipment, restrictive motor carrier agreements, credit and other financial issues. These small business owners need to know they have rights to collect their downtime losses from adverse parties and their insurance companies.

Diminished Value

Wait, there’s one more present under the tree! Collecting diminished value is a gift often forgotten. Let’s say one of your company’s new trucks gets blasted from the side… $25,000 of damage done in an instant. While the other side might agree to pay for the repairs, what about the valuation claim? Is the truck worth as much now since it’s been in an accident? Maybe not.

Consider getting a valuation of the equipment before settling with the adverse party. A valuation expert familiar with heavy equipment should review the damage and provide a report as to the lost value of the truck. Push for this additional payment.

Most importantly, be careful what you sign. Consider not signing a release until all matters are resolved. If you do, you may waive your rights to any more money.

It’s the Season

Ho! Ho! Ho! In our experience, insurance adjusters are often eager to settle claims near the end of the year, to get the debt off the books. Take advantage of this opportunity and give yourself a gift of settlement monies this Christmas. Even if that doesn’t work, insurance companies may have new money after the beginning of the new year to settle claims. The new year may bring a new adjuster who takes over the case and gives you a better offer. It’s worth the effort!

Review your company’s pending and recently closed claims and set some new year’s goals to collect your just monies.  When the other driver’s responsible for an accident, your pocketbook shouldn’t have to take the hit.  Make a plan for action, make your spirits bright, and jingle all the way home with newly found profit for your company!

Attorneys Kelsea Eckert, Jason Schafer and their staff can help open these gifts of found money. The transportation law firm of Eckert & Associates, P.A. offers free consultations and contingency fees in the areas of downtime, subrogation, cargo claims, mechanic negligence and small claims. They may be reached at 1-800-Downtime or www.DowntimeClaims.com.

*The information provided is for general informational purposes only and does not constitute legal advice.