A bus is a commercial vehicle that carries passengers from one destination to another. There are several variations of a bus. However, a bus should have adequate insurance when operating in any capacity. This protects the business or organization that owns the bus and the driver and passengers inside.
Most insurance for buses will fall under commercial auto insurance. It’s the same insurance that taxis, limousines, and ride-sharing services use. However, since buses are usually carrying much more people than the vehicles mentioned, buses require a higher limit of liability.
According to the Federal Motor Carrier Safety Administration, passenger vehicles that carry 16 or more people (including the driver) are required to have at least $5 million in liability insurance. Passenger vehicles with 15 or fewer people are required to have $1.5 million in liability insurance. These requirements could differ depending on the city and state you live in.
Understanding Buses and Their Insurance
Generally, bus insurance is going to cover bodily injury and property damage. However, different styles of buses may obtain or require special policies to cover their needs.
A charter bus is usually designated for use by private groups whether it be a high school band, church, football team, family reunion, etc. It usually features storage underneath the bus and a bathroom on the bus.
You’ll want to ensure your charter bus is equipped with commercial auto insurance covering bodily injury and property damage. This will cover medical costs and repair costs if the charter bus is involved in an accident.
A sightseeing bus usually carries passengers along a predetermined route for sightseeing purposes. You may see these buses in areas frequented by tourists.
It is advised that companies that own and operate sightseeing buses have insurance that covers bodily injury, property damage, and medical payments. It’s also a good idea to have a policy that covers lawsuits and legal defense.
An airport bus or airport shuttle is used to drive people within airport property. Some airport buses will also take passengers from the airport to a hotel or another drop-off location and vice versa.
You’ll need commercial auto insurance for an airport bus or shuttle. You should consider policies covering bodily injury, property damage, medical, and legal fees. You’ll also want a policy that covers business interruption. This will compensate your business if the airport is undergoing closure or any kind of unexpected interruption that prevents your business from making money.
A transit bus is more commonly known as a city bus. It is used to pick up and drop off passengers at predetermined stops around a city or town. It usually features space for people to sit or stand while the bus is in motion.
A transit bus should be covered with liability insurance. This provides coverage for property damage and bodily injury. You can also add coverage for medical expenses.
A school bus is a bus that is owned/leased and operated by a school system. Its purpose is to pick up students from their homes and drop them off at school. It can also be used for school field trips, football games, and other school-related events that require travel. School buses can look different depending on the state and school system. Most are yellow with black details and feature a red stop sign that alerts drivers when the bus is stopping to pick up or drop off a student.
Insurance requirements for school buses will depend on the school board or school district. Some may require higher amounts of liability coverage depending on the number of students that are picked up and dropped off. Generally, school buses will have liability, comprehensive, and collision insurance.
Let Us Help Protect Your Business
Transportation Insurance Brokers offers commercial auto insurance that will give your business coverage for various buses. Our insurance options cover property damage, liability, bodily injury, workers’ compensation, and more. TIB also offers commercial umbrella insurance that will offer businesses protection if they are deemed negligent in a lawsuit. We can provide you with a free quote by clicking here. You can also get in contact with us by clicking here.