Shuttle Bus Insurance

A shuttle bus operator certainly needs insurance. Shuttle bus insurance is essential for shuttle bus operators because it can provide financial protection in the event of an accident or other unforeseen incident. 

The specific types of insurance that a shuttle bus operator may need can vary depending on the specific business and the laws and regulations in the area where the business operates.

However, some common types of insurance that a shuttle bus operator may need include:

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  • Commercial vehicle insurance:
    This type of insurance covers the vehicles that the shuttle bus operator uses to transport passengers. It can provide coverage for damages to the vehicles and liability protection if the shuttle bus is involved in an accident.
    This may include liability insurance, which covers damages or injuries the shuttle bus operator is found responsible for, and collision coverage, which covers damages to the shuttle bus itself.
    Other types of insurance that may be required for shuttle bus operators include medical payments coverage, uninsured/underinsured motorist coverage, and personal injury protection.
  • General liability insurance:
    This type of insurance can protect against claims of injury or property damage that may arise while the shuttle bus is in operation.
  • Insurance for the shuttle bus operator’s physical location, such as commercial property insurance and equipment insurance.
  • Worker’s compensation insurance:
    This type of insurance provides coverage for employees who are injured on the job.

Shuttle Bus Insurance

Insurance requirements for shuttle bus operators vary depending on the state in which they operate. It is vital for a shuttle bus operator to consider the specific insurance needs of their business carefully and to work with an insurance professional to obtain the appropriate coverage.

Depending on the specific type of business, the insurance requirements may vary.

For example, a shuttle bus operator who provides transportation services to schools or other organizations may have different insurance requirements than a shuttle bus operator who provides transportation services to tourists or travelers. 

Does a shuttle bus need special insurance?

In general, shuttle bus operators need liability insurance to cover damages or injuries that may occur as a result of their operations. In addition, it is also helpful to have other types of insurance, such as property damage insurance, to cover any damage to the shuttle buses or other vehicles.

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In broad terms, the primary insurance needs of a shuttle bus operator are to cover the liabilities that come from providing services to your customers, and commercial insurance to protect the value of your assets, like the buses themselves, and your offices, workshops and storage places.

Insurance for shuttle bus services

Providing services in return for payment exposes a business to specific risks related to its liabilities as a service provider. A shuttle bus service requires special insurance coverage. Shuttle buses transport passengers and are often used by schools, airports, hotels, and other organizations. Because these vehicles are used to transport passengers, they must have insurance coverage specifically tailored to their use. 

Professional liability insurance: This type of insurance can protect service providers against claims of professional negligence or mistakes that cause harm to a client. It is also known as Errors and Omissions (or E&O) insurance.

An example of a claim under E&O insurance would be where your shuttle bus breaks down on the way to pick up some passengers from a hotel and take them to the airport. Suppose they miss their flight and must be accommodated overnight until the next day. In that case, your shuttle bus company may be liable for the expenses.

In this case, your insurance would cover these costs, less any agreed deductible. Another possible claim could be if the driver failed to secure the luggage hold property, and when moving at speed down the highway, the luggage door flies open, and all the bags are lost. In such a case, your shuttle bus company can be held liable for the value of all the contents.

General liability insurance: This type of insurance can protect service providers against claims of bodily injury, property damage, and other types of losses that may occur while providing services. An example of a general liability claim would be if your bus driver pulled off before a passenger was safely mounted and seated.

Suppose the passenger fell down and was injured, or dropped an expensive electronic device. In that case, you are liable for all of the consequential damages or losses. This is a typical “trips-and-falls” insurance policy that covers you in the case of accidental injury or damage to third parties.

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Service providers need to review the insurance requirements that apply to their business carefully and to work with a licensed insurance agent or broker to ensure that they have the appropriate coverage in place.

Asset insurance for shuttle bus owners

As well as the covers listed above for your services, like any other business, you should be protecting your physical assets against losses that are caused by events such as fires, storms, theft, and other types of damage.

Commercial property insurance policies provide coverage for the cost of repairing or replacing damaged physical property such as buildings, as well as the income that a business may lose as a result of being unable to operate out of those premises due to damage.

Some policies can also provide coverage for temporary relocation expenses if a business needs to move to a temporary location while its property is being repaired or replaced.

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An example would be if your buses are housed in a building you own, and a fire breaks out somewhere and some or all of the building is damaged. You can then claim the cost of rebuilding or repairs, up to the limit of the policy.

For the period that you have to relocate your buses to leased premises, you can also claim the rental costs and any associated expenses.

Commercial vehicle insurance provides several different covers. 

A commercial auto policy is a type of insurance that provides coverage for vehicles that are used for business purposes. This policy can protect a wide range of vehicles, including cars, trucks, vans, and shuttle buses.

A commercial auto policy typically provides coverage for:

  • Liability: This type of coverage can protect the shuttle bus business if it is found to be at fault in an accident that causes injury to another person or damage to their property.
  • Physical damage: This type of coverage can protect the shuttle bus business’s own vehicles if they are damaged in an accident or due to other types of losses, such as theft or vandalism.
  • Medical payments: This type of coverage can cover medical expenses for the driver and passengers of the business’s vehicles if they are injured in an accident.
  • Uninsured/underinsured motorist: This type of coverage can protect the business if it is involved in an accident with a driver who does not have enough insurance to cover the damages.

What would be the cost of shuttle bus insurance

The specific coverage required will vary depending on the size of the business and the capacity of the vehicles. While we can only give rough estimates, we have some experience dealing with other businesses involved in passenger transport, such as Water Taxis, Truck Driving Schools, Pet Taxis, and Furniture Deliverers so the following estimates should be a good starting point for your investigations.

 

Subject Level of cover Likely average cost per year
General liability – buses under 16 passengers $1.5 million per year, maximum $250,000 single claim $600 – $950
General liability – buses 16 passengers or more $5 million per year, maximum $500,000 single claim $800 – $1350
Personal Liability $250,000 full year, $10,000 single claim, $1,000 deductible $750 – $1200
Commercial property Calculated on insurable value (IV) $.30 – $.45 per $100 IV
Commercial vehicles Calculated on insurable value (IV) plus third-party cover $3500 – $4700 plus $1.25 – $2.35 per $100 IV 

FAQ

Are there any relevant insurance laws about shuttle buses?

The Federal Motor Carrier Safety Administration (FMCSA) is a government agency that regulates the trucking and bus industries in the US. The FMCSA does have insurance requirements for shuttle buses that are used in interstate commerce.

Under the FMCSA’s regulations, shuttle buses that are used in interstate commerce must carry minimum levels of liability insurance that depend on the size of the vehicle and the type of operation it is being used for.

For example, shuttle buses that are used to transport passengers and have a seating capacity of 16 or more people (including the driver) must carry a minimum of $5 million in liability insurance. This includes coverage for bodily injury, property damage, and other types of losses that may occur while the vehicle is being operated.

It is important for the owner of a shuttle bus to review the FMCSA’s insurance requirements carefully and to work with a licensed insurance agent or broker to ensure that they have the appropriate coverage in place.

Can a passenger sue if injured traveling on a hotel shuttle bus?

In the event of an accident that injures a passenger picked up from a hotel for transport to the airport, the liability is transferred from the hotel on the shuttle bus company as soon as the passenger sets foot onto the bus. Consider a real case where a shuttle bus company has a contract to operate a shuttle service to the airport from a hotel.

On one night, the shuttle collected five people from the hotel and headed out to the airport. It was a very cold night, and a number of cars were approaching a red light at the same time.

The shuttle hit a patch of ice and began to skid. The shuttle driver tried to navigate, but eventually, four cars were involved in the collision. A passenger on the bus, and one of the car drivers, were injured.

The shuttle bus company was sued for all of the consequential losses and injuries. As well, the hotel sued for consequential losses.

Without all the proper insurance, it would have bankrupted the shuttle bus company. Fortunately, they had everything in place, and in the end the whole incident cost them only their agreed deductible.

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