Comm UM | Allegiance Insurance

Crucial Protection for You and Your Passengers: Understanding Uninsured/Underinsured Motorist (UM/UIM) Coverage

Imagine this: One of your company vehicles, with an employee and a co-worker inside, is hit by another driver. The other driver is at fault, but they either have no auto insurance (uninsured) or their insurance limits are too low to cover the medical bills and vehicle repairs (underinsured). Your business is left facing significant costs. This is where Uninsured/Underinsured Motorist (UM/UIM) coverage steps in.

What is Uninsured/Underinsured Motorist (UM/UIM) Coverage?

UM/UIM coverage protects your business and its occupants when they are involved in an accident with an at-fault driver who doesn't have sufficient insurance to cover the damages they caused.

Uninsured Motorist (UM): Covers bodily injury and, in some states, property damage if the at-fault driver has no insurance at all.
Underinsured Motorist (UIM): Covers bodily injury and, in some states, property damage if the at-fault driver's insurance limits are not high enough to cover the full extent of the damages.
Covers Your Occupants: This coverage can help pay for medical expenses, lost wages, and pain and suffering for your employees or other occupants of your company vehicle.

Think of it as a financial backup plan; UM/UIM coverage steps in to cover losses when the at-fault party can't.

Why Is It Important?

Protects Your Employees: It ensures that your employees and any passengers in company vehicles receive necessary medical care and compensation even if the responsible party is uninsured or underinsured.
Avoids Business Burden: Without it, your business might face the burden of employees' medical costs, lost work time, or even workers' compensation claims that could have been covered by the at-fault driver's insurance if they had it.
Common Problem: A significant number of drivers operate without adequate insurance, making UM/UIM coverage a critical safeguard.

Additional Points to Consider:

State Requirements: Some states mandate UM/UIM coverage, while others offer it as an optional but highly recommended addition.
Bodily Injury vs. Property Damage: UM/UIM coverage can be split into bodily injury and property damage components. Ensure both are included if you want comprehensive protection for your vehicle as well.
Stacking Options: In some states, you can "stack" UM/UIM coverage, meaning you can combine the limits from multiple vehicles on your policy to increase your total coverage amount in the event of a claim.

By including UM/UIM coverage in your commercial auto policy, you're providing an essential layer of protection for your employees and your business against the financial fallout of accidents caused by inadequately insured drivers.