A large commercial auto liability limit does not tell you whether an injured employee has uninsured motorist coverage. Under Louisiana’s commercial-policy rule effective August 1, 2024, the insured must select that coverage. If there is no selection and no premium payment that includes UM, the law presumes it was not selected.
Louisiana Changed the Default Rule for Commercial Auto Policies
For years, Louisiana drivers learned a familiar rule: an automobile liability policy generally includes uninsured and underinsured motorist coverage at the bodily injury liability limits unless the named insured validly rejects it, chooses lower limits, or selects economic-only coverage.
That remains the basic rule for personal automobile policies. It is no longer the default for commercial automobile policies.
Louisiana Revised Statutes 22:1295(7), enacted by Act 770 of 2024, gives the commercial insured the option to select UM coverage on a form promulgated by the commissioner of insurance. When there is no selection on the form and no premium payment that includes UM coverage, the statute creates a presumption that the insured did not select it.
The change became effective August 1, 2024. The Louisiana Department of Insurance’s Bulletin 2024-02 explains the new commercial form and warns that a commercial policy will not include UMBI coverage at the same limits as its bodily injury liability coverage unless the insured requests otherwise.
Why This Matters After a Serious Work-Vehicle Crash
Liability coverage protects the business and its insured drivers when they are legally responsible for injuring someone else. UM coverage serves a different purpose. It may compensate an insured person injured by a driver who has no liability insurance or too little insurance.
A company can therefore carry a large liability limit, such as $1 million, while having no UM coverage for an employee injured by an uninsured driver. The liability limit printed on the declarations page does not prove that matching UM coverage exists.
This can affect drivers and passengers in delivery vans, contractor trucks, company cars, fleet vehicles, and other commercially insured vehicles. Whether a particular employee or passenger qualifies as an insured still depends on the policy language and the circumstances of the crash.
How the selection and premium records change the answer
The following are hypothetical examples of the coverage questions.
The company never selected UM
A plumbing company buys a commercial auto policy after the new rule takes effect. It does not select UM coverage and pays no UM premium. An employee is later badly injured when an uninsured driver runs a red light. The company’s $1 million liability limit does not automatically become $1 million in UM coverage. The statutory presumption is that no UM coverage was selected.
The company purchased lower UM limits
A delivery company carries $1 million in liability coverage but affirmatively selects $100,000 in UM coverage and pays the corresponding premium. If a covered employee is injured by an underinsured driver, the available commercial UM limit may be $100,000, not $1 million. The at-fault driver’s liability coverage, damages, policy wording, and other available insurance must also be considered.
The paperwork and premium records conflict
The declarations page lists a UM premium, but the insurer says the company never selected coverage. That is not a situation in which anyone should accept a telephone denial. The selection form, declarations, endorsements, invoices, renewal documents, underwriting file, and premium history should be obtained and compared.
What Documents Should Be Reviewed?
A sound coverage investigation should include more than the one-page declarations sheet. Important records can include:
- The complete policy and every endorsement in effect on the crash date
- The commercial UMBI selection form
- The original application and renewal applications
- Declarations from each relevant policy period
- Premium invoices, audits, and payment records
- Communications among the business, broker, agent, and insurer
- Records identifying the named insured and the person who made the coverage selection
The policy effective date and renewal history may matter. A policy or selection made before August 1, 2024 can present transition issues that should not be decided merely by looking at the accident date. An older rejection, a later renewal, a change in liability limits, or a newly issued policy can alter the analysis.
What Types of Commercial UM Coverage May Be Selected?
The Department of Insurance form recognizes coverage for both economic and noneconomic loss, as well as available lower-limit and economic-only choices. Economic losses can include medical costs, funeral expenses, lost wages, and out-of-pocket expenses. Noneconomic losses can include pain, suffering, inconvenience, and mental anguish.
Economic-only UM coverage is not the same as full UM coverage. It excludes noneconomic damages. Also, UM bodily injury coverage is not collision coverage, comprehensive coverage, workers’ compensation, or medical payments coverage. Each pays for a different risk.
Can an Injured Employee Have Other UM Coverage?
Possibly. The absence of UM coverage on the employer’s commercial policy does not automatically end every coverage inquiry. An injured person may have a personal auto policy, may qualify under a resident family member’s policy, or may be covered by another policy. But Louisiana has anti-stacking and priority rules, and a policy may contain enforceable definitions or exclusions.
Workers’ compensation may also pay covered medical expenses and wage benefits when the crash occurs in the course and scope of employment. A compensation carrier can have reimbursement and credit rights against a third-party recovery. The notice and settlement-approval requirements should be coordinated before settlement.
For the broader work-vehicle claim framework, see our Baton Rouge commercial vehicle accident guide. Our guides to crashes involving uninsured drivers and Louisiana’s no-pay, no-play rule explain related insurance issues.
What Should You Do After the Crash?
- Report the crash to every potentially applicable insurer.
- Request the complete commercial policy, not just an insurance card.
- Ask specifically for the UMBI selection form and premium history.
- Preserve employment, dispatch, vehicle-use, and crash records.
- Do not sign a release for the at-fault driver without considering UM, workers’ compensation, and reimbursement rights.
- Have the coverage documents reviewed promptly. Louisiana’s UM prescription statute generally specifies two years from the accident. A lawyer should assess any interruption, suspension, or other deadline issue before that period expires.
When requested coverage was not placed
If the business requested coverage that was not placed, the agent’s or broker’s handling of the request may require separate investigation. That question depends on the communications, application, authority of the parties, and applicable deadlines. It is separate from deciding what coverage the issued policy provides.
Official Sources
- Louisiana Revised Statutes 22:1295
- Act 770 of 2024, official legislative digest
- Louisiana Department of Insurance Bulletin 2024-02 and commercial UMBI form
Have the Entire Coverage File Reviewed
A serious injury claim should not be evaluated from the insurance card or liability limit alone. Babcock Injury Lawyers can review the policy, selection form, premium history, and other possible sources of recovery. Call 225-500-5000 in Baton Rouge or 318-777-5000 in North Louisiana to request a free consultation.
Editorial & Legal Accuracy Notice (Louisiana)
Sources checked: September 26, 2026
This article addresses Louisiana law and is general information, not legal advice for a particular claim. Commercial policies, endorsements, selection forms, and renewal histories vary. Coverage should be evaluated from the complete policy file.