Subject: Understanding Commercial Truck Downtime: Labor Hours vs. Actual Days Out of Service
Hello everyone,
I am an attorney based in Ohio, currently representing a commercial truck owner whose parked vehicle was damaged (with the other party being 100% at fault). As I navigate this case, I could use some insights from industry professionals regarding the standards for calculating truck downtime.
Case Overview:
- The truck was in an approved repair shop from September 5 to September 30 (totaling 25 days).
- A delay in receiving a discontinued chassis fairing part pushed the completion date to September 23.
- The insurance company has only compensated for 8 days of downtime, basing their calculation on labor hours (dividing by 4 hours a day).
- They argue that parts should have been sourced prior to the truck’s drop-off and therefore will not cover the entire waiting period.
Inquiry: Is it common practice within the industry to calculate commercial vehicle downtime using labor hours rather than the actual days the vehicle was out of service? My client believes he should be compensated for the full 25 days the truck was in the shop, as has been the case in his past experiences.
I would greatly appreciate feedback, especially from commercial adjusters and insurance professionals who deal with claims of this nature. Thank you!
In the context of commercial truck downtime, the calculation for compensation can indeed vary based on industry standards and insurer policies. However, your client’s situation suggests that the more common practice within the trucking industry is to consider the total days a vehicle is out of service, rather than strictly basing compensation on labor hours rendered.
Here are some points to consider:
Total Downtime vs. Labor Hours: Many in the trucking industry advocate for considering the total days a vehicle is out of service (25 days in this case) rather than just the labor hours. This approach accounts for all factors affecting the truck’s usability, including waiting for parts, even if that time was not strictly productive in terms of labor.
Industry Practice: It’s not uncommon for truck owners to expect compensation for the total downtime, especially when external factors like delayed parts are beyond their control. The industry often recognizes that a vehicle off the road for an extended period represents a loss of income and additional costs for the owner.
Insurance Adjuster Perspectives: From an insurance perspective, while labor hours might be a method for calculating costs, most adjusters will also take the full context into account—specifically, the inability of the truck to generate revenue during the downtime. If your client’s truck was in the shop for legitimate reasons and was not operable, they should make a strong case for the entire 25 days.
Precedents Established: Your client’s history of being compensated for the total days out of service can be a vital part of your argument. Providing examples of past claims paid in a similar manner could help substantiate the claim for the full 25 days.
Documentation and Evidence: Ensure that all documentation related to the downtime, including repair records and communications with the shop regarding part availability, is collected. This will support the argument that the vehicle was genuinely out of commission.
Negotiation with Insurance: If the insurance adjuster is relying solely on labor hours, it may be worth engaging in negotiation to emphasize the broader impact of the vehicle’s downtime on your client’s business.
In conclusion, the argument for compensating your client for the entire 25 days seems stronger based on industry standards. Engaging with specifics and proper documentation will be essential in making a compelling case.