Charter Bus Liability Insurance: What Coverage Is Required?
- Nate Jones, CPCU, ARM, CLCS, AU
- Sep 12
- 2 min read
Operating a charter bus company means transporting groups of people safely and professionally across cities, states, or even the country. Whether you're serving schools, corporate clients, or tourism groups, your business faces unique risks—and having the right insurance is critical to staying compliant and protected.
Why Liability Insurance Is Crucial for Charter Bus Companies
Charter buses carry multiple passengers, operate on public roads, and often travel long distances. This increases the potential for accidents, injuries, and property damage. Liability insurance helps cover the costs of these incidents, protecting your business from financial loss and legal exposure.
Wexford Insurance specializes in providing business insurance for charter bus companies nationwide, helping new ventures and established fleets get the coverage they need.
Required Insurance Coverages for Charter Bus Operators
Required by federal and state regulations.
Covers bodily injury and property damage caused to others in an accident.
Passenger Liability Insurance
Covers injuries to passengers while they’re in your vehicle.
Often mandated by law due to the number of people transported.
Covers third-party claims unrelated to driving, such as incidents at terminals or during boarding.
Physical Damage Coverage
Protects your bus from collisions, theft, vandalism, and natural disasters.
Required if you have employees.
Covers medical expenses and lost wages due to work-related injuries.
Uninsured/Underinsured Motorist Coverage
Protects your business if another driver causes an accident and lacks sufficient insurance.
Wexford Insurance helps you build a policy that meets all legal requirements and operational needs, whether you're running a single bus or a multi-state fleet.
Tips for Staying Compliant
Know Your State and Federal Requirements: Charter bus operators must comply with FMCSA and state-level insurance mandates.
Maintain Vehicle Safety Standards: Well-maintained buses reduce the risk of accidents and claims.
Hire Qualified Drivers: CDL-certified drivers with clean records help lower insurance premiums.
Review Your Policy Annually: As your fleet grows or routes change, your insurance should evolve too.
Common Mistakes to Avoid
Skipping Passenger Liability Coverage: This is essential for any business transporting people.
Underinsuring High-Value Buses: Charter buses are expensive—make sure your policy reflects their full value.
Choosing the Cheapest Policy: Low premiums often mean limited protection. Wexford Insurance helps you find the right balance between cost and coverage.
Final Thoughts
Charter bus liability insurance isn’t just about meeting legal requirements—it’s about protecting your passengers, your vehicles, and your business reputation. Whether you're a new venture or a seasoned operator. Contact Wexford Insurance for expert guidance and customized coverage to help your charter bus company thrive.
