What Is Excess UM/UIM Coverage?
Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage apply when a driver who causes an accident:
- Has no insurance, or
- Does not carry enough insurance to fully cover serious injuries
In Massachusetts, UM coverage is required on auto policies. UIM coverage is also commonly included.
For businesses, these protections are provided through a commercial auto insurance policy.
Excess UM/UIM coverage may increase those limits above your underlying commercial auto policy — if included on your umbrella.
If you’re still evaluating whether additional umbrella protection makes sense overall, you may want to read:
👉 Do I Really Need Umbrella Insurance?
Many Commercial Umbrella Policies Do Not Automatically Increase UM/UIM
It’s common for business owners to assume their commercial umbrella policy increases all auto-related limits.
However:
- Most umbrella policies extend over liability coverage
- UM/UIM is not automatically increased in every case
- Excess UM/UIM may require a specific endorsement
- Some carriers may not offer excess UM/UIM at all
The only way to know how your policy is structured is to review the declarations and endorsements carefully.
Why This Is a Real Exposure for Massachusetts Businesses
Consider a scenario:
- A company vehicle is struck by an uninsured driver
- An employee sustains serious injuries
- Damages exceed the UM/UIM limits on the commercial auto policy
Without excess UM/UIM, recovery may be limited to the base auto limits.
For businesses with:
- Contractor vehicles
- Sales teams on the road
- Delivery drivers
- Service fleets
- Executives driving company vehicles
This risk can be significant.
Massachusetts minimum auto liability limits may not be sufficient in catastrophic injury situations.
How Excess UM/UIM Coordinates With a Commercial Umbrella
If available, excess UM/UIM may:
- Increase bodily injury limits above commercial auto UM/UIM
- Follow the umbrella’s overall limit structure
- Apply after underlying limits are exhausted
Coverage structure varies by carrier and policy form.
Not all commercial umbrella policies are built the same.
Proper coordination between your commercial auto and umbrella policies is critical to avoid unintended gaps.
How to Determine If Your Business Has Excess UM/UIM
Review:
- Commercial auto declarations page
- Commercial umbrella declarations page
- Umbrella endorsements
If excess UM/UIM is included, it is typically listed separately.
If it is not specifically shown, it may not be part of the umbrella policy.
Should Your Business Add Excess UM/UIM?
That depends on:
- Number of vehicles
- Employee driving exposure
- Type of operations
- Existing UM/UIM limits
- Overall umbrella structure
A structured policy review can help determine whether excess UM/UIM is available and appropriate for your business.
Strengthen Your Commercial Umbrella Strategy
If you already carry a commercial umbrella policy, reviewing how it coordinates with your commercial auto coverage is an important step.
Learn more about how umbrella policies work here:
👉 Commercial Umbrella Insurance in Massachusetts
Or request a review:
Recent Comments