Workers' Comp & Auto · Insurance Term
Uninsured/Underinsured Motorist (UM/UIM)
Definition
Uninsured/underinsured motorist coverage (UM/UIM) pays for injuries and, in some cases, vehicle damage when another driver who is at fault has no insurance or too little. It is part of a commercial auto policy and protects you and people in your covered vehicles.
In Plain English
If a driver without insurance hits your company truck, your commercial auto insurance UM coverage can pay for your driver's medical bills and other losses, up to its limit. UIM fills the gap when the other driver's limits are too low.
UM/UIM limits are often set to match the liability limits, though you can choose others. A combined single limit policy may carry a matching UM limit.
Employees driving for work may also be covered by workers' comp, and coordination between the two depends on the policies and Texas law.
Not sure how your policy handles this? Have us review it, or get a quote.
Example
Hypothetical: an uninsured driver runs a red light and hits a property manager driving a company pickup. Medical costs and lost wages reach $60,000. UM coverage may pay those costs, subject to its limits and terms.
Why It Matters for Texas Property Owners
Texas Insurance Code §1952.101 requires auto liability policies to include UM/UIM coverage unless a named insured rejects it in writing. A written rejection usually carries over to renewals until you ask to add it back.
What to Watch For
- Check whether UM/UIM was rejected in writing on your commercial auto policy.
- Compare UM/UIM limits with your liability limits.
- Ask how UM/UIM coordinates with workers' comp for employees.
Sources
Last updated October 14, 2026 · Primesure editorial team · How We Write