Your service vehicle isn’t just a way to get from job to job — it’s a vital business tool. When it’s involved in an accident, it can be detrimental to your company, significantly impacting your income and future business opportunities. If one of your service vehicles was involved in a car accident that wasn’t your fault, you may be eligible to file a loss of use claim to compensate you for lost profits while it’s in the shop. Learn more about filing loss of use claims for service vehicles in Florida:
What is Loss of Use?
Loss of use compensates you for your company’s inability to generate income while a service vehicle is out of commission after being involved in an accident. It covers the costs of renting and outfitting a similar vehicle while the other is repaired and compensates you for lost income during the repair process.
Many types of service vehicles may qualify for a loss of use claim, such as:
- Delivery trucks
- Service vans
- Commercial cars and SUVs
- Pest control vehicles
- Dump trucks
- Construction equipment
- Food trucks
- Landscaping trailers
- Pool cleaning trucks
- Pressure washing vehicles
- Semi-trucks
- Tractor trailers
- Taxi cars
When Can You Claim Loss of Use?
Business owners and operators can claim loss of use for service vehicles from the at-fault driver’s insurance after an accident. The vehicle must have been used to produce income.
Proving Loss of Use
You will need to provide evidence of the nature of your service vehicle and the income you lost because it was out of commission. We discuss the common types of evidence that can be used to prove a loss of use claim below:
Rental Vehicle Information
Make sure you keep all receipts and emails related to your rental vehicle. You’ll want to note the rental vehicle length and any fees associated with renting a similar type of vehicle to utilize for work.
Generated Income Before the Accident
The value of your claim is determined by the income the service vehicle generated for your business before the accident and the estimated income lost due to the accident. To prove this, you’ll need to provide financial records such as tax returns and profit/loss statements that display the income that specific service vehicle provided your business before the accident.
Evidence of Lost Profits
You’ll need to provide evidence of the lost profit your business experienced due to the service vehicle being out of commission. The profit loss must be directly correlated to the service vehicle’s inability to operate. Evidence of this could include reports of lost clients, jobs, projects, canceled deliveries, terminated contracts, and inquiries you would have been able to fulfill if the service vehicle had been operational.
Out of Service Period
Florida law allows business owners to receive compensation for loss of use as long as the out-of-service period is reasonable and necessary. You will need to show that you did everything possible to reduce the out-of-service period and get repairs completed quickly and effectively. The out-of-service period starts on the accident date and ends when you receive the repaired vehicle. If the car is totaled, the out-of-service period begins on the accident date and ends on the date you purchase a replacement.
How Loss of Use Value is Calculated
If your company is not able to secure a temporary replacement vehicle, loss of use damages are the net profit lost during the time the service vehicle was inoperable. If your company did secure a temporary replacement vehicle, the damages are the cost of the replacement vehicle and associated cost of putting the replacement vehicle into service.
Most specialized service vehicles cannot be replaced with a rental. For example, service vehicles in the pest control industry are highly regulated, making it nearly impossible to secure a temporary replacement.
Loss of Use vs. Diminished Value: What’s the Difference?
Loss of use provides compensation for your inability to use your service vehicle while it’s out of service. Diminished value claims, on the other hand, compensate you for your vehicle’s loss of market value due to its accident history. In some instances, you may be able to receive compensation for both loss of use and diminished value. Contact a diminished value attorney like Brett M. Bressler to discuss your options.
Claim Loss of Use with Your Service Vehicle with Brett M. Bressler
We have helped dozens of business owners receive loss of use compensation for service vehicles damaged in an accident, such as dump trucks, semis, landscaping trailers, pest control, and pool services. Contact the law office of Brett M. Bressler at 407-599-2002 for a free consultation to discuss your case.
