As a small business owner, your company vehicles are essential to daily operations, whether you're delivering products, visiting clients, or transporting equipment. But what happens if one of your business vehicles is involved in an accident caused by an uninsured or underinsured motorist?

With one of the highest rates of uninsured drivers in the country, roughly 1 in 8 drivers on Texas roads are uninsured, according to the Insurance Research Council. Although more drivers carry the bare minimum liability coverage, it may not be enough to cover the damages and medical costs associated with a serious accident.

This is why carrying Uninsured or Underinsured Motorist Coverage as part of your Commercial Auto policy is critical to protect your business. In today's blog post, we'll take a closer look at how this specific coverage can safeguard your business, and why Aegis Insurance & Financial Services is the Commercial Auto Insurance partner your business needs.

The Risks of Being Hit by an Uninsured or Underinsured Driver

Accidents involving uninsured or underinsured motorists can create a host of problems for small business owners, including:

• Costly Repairs or Replacement: If your business vehicle is damaged in an accident with an uninsured motorist, you'll likely have to cover the repair or replacement costs out-of-pocket, especially if the other driver has no insurance to fall back on.
• Medical Bills for Injured Employees: If the accident causes an injury to the employee driving the business vehicle, Workers Compensation coverage (if you carry it) may not cover all of their medical expenses or costs. As a result, your business could face significant out-of-pocket medical expenses.
• Lost Business Income: Without a working vehicle, your operations could grind to a halt, leading to delays in services or deliveries and potentially costing your business thousands in lost revenue.
• Legal Costs: Even if you attempt to sue the at-fault driver, collecting compensation from an uninsured or underinsured driver can be a lengthy, expensive process that may not guarantee you'll recover the full costs.

Uninsured or Underinsured Motorist Coverage Offers Protection

Uninsured or Underinsured Motorist (UM/UIM) coverage can help small business owners avoid financial disaster if their business vehicle is involved in an accident with a driver who lacks sufficient insurance.

Here's what UM/UIM coverage typically includes:

• Vehicle Repairs or Replacement: This coverage helps cover the cost of repairing or replacing your vehicle after an accident with an uninsured or underinsured motorist. Without it, you may be forced to pay for these expenses yourself.
• Medical Expenses: If the driver or passengers in your business vehicle are injured in the accident, UM/UIM coverage can help pay for their medical expenses, including hospital stays, surgeries, and rehabilitation.
• Lost Wages: If the accident results in injuries that prevent your employees from working, this coverage can help reimburse lost wages during recovery.
• Pain and Suffering: In some cases, UM/UIM coverage may also provide compensation for non-economic damages, such as pain and suffering resulting from injuries caused by the accident.
• Hit-and-Run Accidents: If your business vehicle is struck by a hit-and-run driver, UM/UIM coverage typically applies. This is critical because hit-and-run drivers are often uninsured.

Why It's Important for Texas Business Owners

Given the high number of uninsured drivers in Texas, business owners are taking a significant risk if they don't include UM/UIM coverage in their commercial auto policy. Even if you have collision coverage, it may not cover all of the expenses you face when dealing with an uninsured or underinsured driver. UM/UIM coverage fills these gaps, ensuring your business is protected from the financial consequences of such accidents.

Protect Your Business with Aegis Insurance & Financial Services

If your small business relies on company vehicles, protecting them with Uninsured or Underinsured Motorist Coverage is essential. The risks on Texas roads are real, and one accident with an uninsured driver could leave your business facing significant financial strain.

Contact Aegis Insurance & Financial Services today at 713-850-7622 to discuss your Commercial Auto Insurance options and ensure you have the protection you need. Our team of experienced agents will work with you to customize a policy that fits your business and helps you avoid costly risks on the road.

Get peace of mind knowing that your business is covered no matter who's on the road. Reach out to Aegis Insurance & Financial Services today and safeguard your company vehicles with the right coverage.