Understanding Commercial Truck Downtime: Labor Hours vs. Actual Days Out of Service
Hello, I’m an attorney in Ohio representing a commercial truck owner whose parked vehicle was struck (the other party is fully liable). I have limited experience with commercial truck matters, and I’m seeking insights from industry professionals regarding the standards for calculating downtime.
Case Details:
- The truck was at an authorized repair shop from September 5 to September 30 (25 days).
- The delivery of a discontinued chassis fairing part was delayed until September 23.
- The insurance company only reimbursed for 8 days of downtime by calculating labor hours (dividing hours by 4 hours/day).
- The insurer claims that the necessary parts should have been sourced before the truck was dropped off and therefore will not cover the waiting period.
Inquiry: Is it standard in the industry to calculate commercial vehicle downtime based on labor hours rather than the total days the vehicle is out of service? Should my client be entitled to compensation for all 25 days the truck was unavailable? The client mentions that in previous instances, compensation was based on the time the truck was in the shop, not solely on labor hours.
I would greatly appreciate feedback from commercial adjusters and insurance professionals who deal with these types of claims. Thank you!
When it comes to calculating downtime for commercial trucks, there are varying standards and practices in the industry. However, it’s essential to understand that the accepted measure of downtime can depend on the specifics of the insurance policy and the agreements made between the insured and the insurer.
In your case, it seems that the insurance company is using a labor hours approach, likely based on their internal guidelines or the terms of the policy. It’s common for insurers to calculate lost revenue or downtime based on the number of labor hours required for repairs, often summarized as hours worked per day. However, this doesn’t always align with the realities faced by truck owners regarding the unavailability of the vehicle.
From an industry perspective:
1. Actual Days Out of Service: Many commercial vehicle operators and owners expect compensation based on the total days their vehicle is unavailable for use. This includes not only labor time but also delays in parts and other factors that contribute to the vehicle being out of service.
Policy Terms: You should closely review the specific terms of the client’s insurance policy. There may be particular provisions regarding how downtime is calculated, which could offer support for your claim of full compensation for the 25 days.
Industry Practices: While it may be common for some insurers to consider labor hours, others may take a broader perspective that includes total downtime. Your client’s experience indicates that they have historically been compensated for the entire duration of the truck being out of service, which reinforces the argument for full compensation.
Voice of Experts: Engaging commercial adjusters and insurance professionals for insights is critical. Many in the industry advocate for considering the full scope of downtime, especially if parts delays and other complications contributed to the extended repair period.
In summary, it may be prudent to argue for the full 25 days of downtime based on industry norms and your client’s past experiences, particularly if the delays were beyond their control. Consider preparing documentation and evidence detailing how typical claims have been handled in the past and any industry standards to support your case. If necessary, pursuing negotiation or mediation with the insurer might also lead to a more equitable resolution.