Before a district lets you run a single route, it will ask for proof of insurance, and it will ask again every year. The limits, the wording and the kinds of cover are set by the state, the district's bid documents or both. Get one detail wrong, such as the district's exact name on the certificate, and the contract can stall.
Here are the usual school bus contractor insurance requirements, what each cover is for, and how to keep the paperwork current.
What districts usually ask for
| Cover | What it's for | Notes |
|---|---|---|
| Commercial auto liability | Injury and damage caused by your buses | The main one; the limit is set by the state or the contract |
| Umbrella or excess liability | Above the auto and general limits | Often asked for on larger contracts |
| General liability | Claims not caused by driving, such as at your yard | |
| Workers' compensation | Your employees injured at work | Required by state law |
| Physical damage | Your own buses | Often required by your lender, not the district |
| Abuse and molestation | Claims involving students | Increasingly asked for |
Many states set minimum limits for school bus contractors, and districts often ask for more. Contracts also commonly ask that your insurer has a minimum financial rating, and that you pay any claims under your deductible.
The certificate of insurance
- The district named as additional insured, with its exact legal name.
- The policy numbers, limits and dates for each cover the contract asks for.
- Notice of cancellation to the district, if the contract asks.
- Sent before service starts, and again at every renewal.
Tip: Ask your agent to send the district a new certificate the week the policy renews, every year. A lapsed certificate on file can stop payments even when the policy is fine.
A routine
- Read the insurance section of every bid or contract before you price it; the premiums are a real cost.
- Send it to your agent and get a quote for exactly what's asked.
- Keep each policy's dates and certificate where you can find them.
- Look ahead every month at renewals in the next 60 days.
- Send the new certificates to every district when they renew.
Good to know: This is general information, not insurance or legal advice. Requirements come from your state and each district's contract. Ask an insurance agent who works with school bus contractors.
Doing it in FleetCommander
Every policy. Under Insurance, Manage › Add policy with the Policy number, the Carrier, the Policy type (auto liability, physical damage, general liability, workers' comp, umbrella or other), what it Covers (one vehicle or the whole fleet), the premium, deductible, limit, the Effective date and Expiration date, and the Certificate of insurance (COI). The list shows Active, Expiring soon and Expired, and a policy without a certificate is flagged. You get reminders before a policy runs out. See the Insurance guide.
Each bus. Vehicle status under Reports lists every bus with its Insurance expires date, and a bus with no insurance on file shows in the missing papers notices.
Ava (Beta), the assistant in the app, answers Any insurance expiring soon? or Show our insurance policies. More on her page.
Related reading
Questions people ask
- What insurance does a school bus contractor need?
- Usually commercial auto liability, an umbrella policy, general liability, workers' compensation, physical damage on the buses and, more and more, abuse and molestation cover. The contract and state set the limits.
- Who sets the insurance limits for school bus contractors?
- The state, in many cases, sets minimums; each district's bid documents or contract can ask for more.
- What is an additional insured on a school bus contract?
- The district, named on your policy so it is covered for claims arising from your work. Its exact legal name goes on the certificate.
- How often do districts need a certificate of insurance?
- Before service starts, and again every time the policy renews.