Buses are the most preferred commute mode choice of billions of people the world over. They play an important role in transporting people to destinations around a city or to different parts of the state or country.

If you are in the public transport business you are aware of the dangers your fleet of buses can pose to passengers and pedestrians alike.  Buses are big and heavy, and maneuvering large passenger vehicles through narrow city streets can be very difficult and dangerous.

Accidents can occur at any time due to a number of reasons such as:

• - Human error due to inadequate bus driver training, fatigue or over speeding
• - Equipment failure
• - Improper vehicle maintenance
• - Bad weather conditions

Appropriate insurance coverage for your fleet of public transport vehicles can provide financial protection; reduce downtime due to mechanical breakdowns or accidents to ensure that your business operations remain unaffected.

Liability and physical damage coverage for buses is rated under the public automobile section in automobile rating manuals. This class of business is often difficult to place through standard markets. Underwriting considerations include the number of passengers that can be carried, annual mileage, and the bus's use. Examples are intra-city, airport, hotel, resort, and school buses. Most states require minimum mandatory financial responsibility limits based on the number of passengers carried.

For a broader understanding of bus-specific coverage options, visit our Bus Insurance Overview or explore tailored policies for School Bus Insurance carriers.

A robust Bus Insurance policy should include the following coverages:

Commercial Auto Liability and Physical Damage

In an accident due to the fault of your bus driver, liability coverage helps pay for:

• Bodily Injury – Covers medical expenses to treat passengers or pedestrians injured in the accident.
• Property Damage – Covers costs to repair vehicles or property damaged in the accident.

Here are some potential add-ons to your auto insurance policy.

Medical Payments Coverage

Pays for medical expenses, funeral expenses or lost wages for your driver or passengers involved in an accident, irrespective of whose fault it is.

Uninsured/Underinsured Motorist

Provides you protection if the at-fault driver has no insurance at all or doesn’t have sufficient insurance.

Physical Damage

Offers protection from claims on accidents arising from fire, explosion, flood, theft and vandalism.

The two types of physical damage on an insurance policy are:     

• Collision Coverage
• Comprehensive Coverage

Sexual Misconduct & Molestation (SMM) Insurance

In the United States, school bus carriers operate the largest mass transportation fleet in the country.

As a public transport operator, it is advisable to protect your employees and hired drivers against real or alleged claims of wrongful acts especially when you are dealing with children and young adults.

Workers’ Compensation

Managing a fleet of buses is no easy task.  Purchasing the right Workers Comp Insurance benefits you as well as your workers.

This coverage pays the medical bills and healthcare expenses to treat work related injuries ensuring that you do not have to bear these costs.

It also protects you against claims by workers for lost wages and other damages.

Initiatives by the company to improve safety standards such as proper and timely vehicle maintenance, and conducting professional safety and health workshops boost employee confidence and helps reduce worker turnover.

Professional Liability or Errors & Omissions (E & OE) Insurance for Transportation

Any error or act of negligence in the delivery of professional transportation services may result in your company being sued by your client.                                     

Professional liability provides coverage for expenses related to legal defense and settlements.

Most small to medium size bus operators will be unable to bear the negative impact on business operations as well as the financial burden as a result of an uninsured errors & omissions claim.