When you get behind the wheel for work—whether you’re running errands for your employer, making deliveries, or using your own car for business—one thing should always be clear—whether you are truly covered if the worst happens. Too often, both business owners and employees assume they’re protected under commercial policies, only to find serious gaps after an accident occurs.

As a local firm that has helped many clients navigate the aftermath of car-related incidents, we want to shed light on a critical yet often overlooked component of auto insurance: uninsured and underinsured motorist coverage (UM/UIM)—and why every working motorist, business owner, and even the general public needs to understand it.

What Is Uninsured / Underinsured Motorist Coverage? 

UM/UIM coverage provides protection if you’re injured in an accident caused by a driver who doesn’t have any insurance—or not enough insurance—to pay for your medical bills, lost wages, and other damages. This coverage can apply whether you’re a driver, passenger, pedestrian, or even a cyclist—if a vehicle was involved in causing your injury. 

Let’s break it down from three key perspectives: 

If you’re a Business Owner 

As a business owner, especially if you or your employees drive as part of the job, you have a duty to protect not just your vehicles—but the people who drive them. 

Why is UM/UIM coverage vital for your commercial auto policy? 

• If you have workers’ compensation, it may cover some injury-related costs, but it won’t fully replace the protections UM/UIM provides—especially for pain and suffering or long-term disability. 
• Liability insurance only covers what you owe if you’re at fault. But if one of your employees is hit by an uninsured driver, your business’s liability policy won’t help them. 
• Without UM/UIM, your employee could be left with unpaid medical bills and lost income—and you could be vulnerable to legal action. 

If your team is on the road, your insurance should include robust UM/UIM coverage. It’s one of the most cost-effective and protective choices you can make. 

If You’re an Employee or Independent Contractor 

Many people don’t realize this: your employer’s insurance might not fully protect you if you’re injured in a work-related crash. Some employers may carry only the minimum coverage—or none at all for non-owned vehicles (like your personal car). 

So what should you do? 

Carry your own UM/UIM coverage on your personal auto policy—even if you mostly drive for work. This coverage can follow you, not just your vehicle. If you’re hit while walking to your car, riding a bike, or even during a business delivery, you may still be covered. If your employer doesn’t offer sufficient protection, your personal UM/UIM may be the only thing standing between you and serious financial hardship. 

It’s wise to review your policy with your insurance agent or attorney—because you can’t assume someone else has done it for you. 

For Everyday Drivers and Families 

Even if you’re not using your car for business, UM/UIM still plays a powerful role in your protection: 

• Imagine getting hit while crossing the street or while biking on your day off. If the driver who hit you has no insurance—or just the state minimum—you may be left covering the bills. 
• UM/UIM coverage can apply even if you weren’t driving as long as a car was involved in causing the injury. 
• In many states, resident family members may also be covered under your policy, which means your children, spouse, or even a dependent parent might have access to benefits if they’re injured. 

The Takeaway 

Whether you’re a business owner managing a fleet, an employee using your car for work, or a pedestrian walking to the coffee shop, UM/UIM coverage can be the crucial factor that determines whether a person recovers with stability or faces serious financial hardship after an accident. 

Here’s what we encourage you to do today: 

• Review your auto policy—and your commercial policy, if you’re a business owner 
• Ask about the limits on your UM/UIM coverage—and increase them if needed 
• Talk with your insurer or a trusted local attorney if you’re not sure what your coverage is 

When it comes to protecting your health, your family, and your livelihood, waiting until after an accident is too late.  

As a local firm deeply committed to protecting the community, CWC is here to answer questions, review policies, and advocate for those harmed by negligence—especially when the unexpected strikes on the road.

 

Disclaimer
The content provided is for general information purposes only. Please refer to the disclaimer of Carter Wolden Curtis, LLP for more details.