Hit by a bad driver? That bad driver’s insurance company may offer to pay to repair your equipment, but may not offer to pay for your other losses and expenses. Do yourself a favor and ask for everything you have rights to be paid on (which do vary a bit state to state).
Property Damage
The term Property Damage is an insurance term that covers Repairs and Totaled Equipment. In addition, there are other claims which are under the property damage umbrella. These include Downtime, Out of Pocket Expenses, and Diminished Value, just to name a few. Here’s an explanation of each:
Downtime/Loss of Use
Downtime is expensive in the transportation business! A damaged truck makes no money after an accident until it’s repaired. This entire period is called “downtime”. Insurance companies also call it “loss of use”, “lost profits”, and “business interruption expenses”.
Out of Pocket Expenses
When making a claim on another driver’s insurance policy, make sure to include all your expenses due to the accident. While the biggest claim may be the repair itself, other out of pocket expenses add up. Some of these include: transfer of cargo, towing, rental of another truck, car rental, hotel, airline ticket, Uber, fuel, and food.
Diminished Value
If a repaired truck is worth less after an accident, consider a diminution of value claim. Ask a valuation expert for a report on the loss of value and make this part of your demand on the insurance company.
Before Signing a Release
DO NOT sign a release with the other party’s insurance company without making sure ALL property damage and personal injury claims are settled, both yours and those of your insurance company or any other claimants. There are different kinds of releases and you should contact a lawyer to review your release before signing rights away.
Note: This article is not legal advice and should not be taken as such. Remember, the laws of each state vary. Please seek the counsel of a transportation attorney to protect your business’ rights.
Blog By: Kelsea Eckert
As the lead attorney, Kelsea Eckert oversees all the downtime claims handled by Eckert & Associates, PA. She’s seen it all in her more than 30 years as a lawyer. She’s primarily worked in the transportation industry. Helping small businesses stand up to the big insurance companies makes the job meaningful for her. She’s a big believer in the value of small business and thinks they should receive the same treatment as the big guys.
