The Delaware Business Insurance Update From CNC Insurance Associates Inc. "Understanding Uninsured Motorists Coverage" 8-8-16

Many small business owners see the coverage "uninsured and underinsured" motorists coverage on their business auto policy, and do not fully understand what it protects.  I thought I would write a few lines that may help with this understanding. Uninsured and underinsured motorists (UM & UIM) coverage protects you, the business owner , from damage with drivers that meet this definition. Based on recent studies, 25% of all drivers either have no insurance or very little insurance. The minimum coverage in many states to have legal auto insurance can be as low as $15,000 liability limits. If you get hit by a driver in a minimum limits auto policy,  they can only offer the $15,000 to pay for your auto damage and your injuries. This leaves you with a potential big gap. That is where your uninsured and underinsured motorists coverage kicks in. This coverage will pay for your damages and repairs and also help pay injuries and lost wages. It is also very reasonable. Adding higher limits to this line of insurance is relatively one of the lessor premium charges in your auto policy. Also many states have laws on the books that if you have to use this coverage because of a claim with an uninsured driver, the claim cannot be used to raise your rates at your next renewal.
Don't forget to look at your UM/UIM coverage and make sure to buy as much as you can afford. It is a very valuable insurance coverage and one that many small business owners need for protection. Until next time be careful out there and know your risks.


G. Kevin Nemith,  Pres. CNC Insurance Associates & The Small Business Insurance Center
Serving DE,MD,NJ, VA, & PA
www.cncinsurance.com
www.bizinsurancetv.org

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