Uninsured/Underinsured Motorist Coverage

Protect Your Business from Uninsured Drivers with Uninsured/Underinsured Motorist Coverage

In today’s world, the need for uninsured/underinsured motorist coverage is growing. As more drivers on the road lack insurance or have inadequate coverage, businesses should be aware of how this impacts their own insurance coverage and what they can do to protect themselves.

Uninsured/underinsured motorist coverage (also known as UM/UIM) provides protection in the event that you are involved in an accident with a driver who either has no insurance or not enough insurance to cover your losses. This type of coverage pays out up to a certain amount and ensures that you will not be left facing mounting medical bills or legal fees if the other party doesn’t have enough insurance or none at all.

For businesses, the need for this type of coverage is even more important. While standard auto policies typically provide some level of uninsured/underinsured motorist protection, larger businesses often require additional protection to ensure their assets are adequately covered in case of an accident involving uninsured drivers. In addition, businesses which employ drivers must consider how this type of coverage would benefit them if one of their employees were involved in an accident with another driver without sufficient insurance. 

When considering UM/UIM protection for your business, it is important to understand both your state requirements as well as any additional coverage you may want to purchase beyond what is required by law. It is also important to understand any age restrictions on the policy and any limits on the amount that would be paid out in case of an accident. 

For small business owners, it’s often difficult to know exactly how much uninsured/underinsured motorist coverage makes sense for them and their operations. Working with a trusted professional who specializes in commercial vehicle insurance can help you determine which levels of protection are necessary for your particular needs and budget. Additionally, speaking with your current auto insurer about available policies can help ensure that you have all the information needed when making decisions about adequate UM/UIM coverage options. 

Uninsured/underinsured motorist coverage plays an important role in helping small businesses keep their vehicles and employees safe while out on the roads—but finding just the right amount of protection can feel like a complex decision fraught with potential pitfalls. By understanding both state requirements and any additional needs that may come along with business operations, small business owners can protect themselves against unexpected costs related to accidents involving uninsured drivers while still keeping within budget constraints.