Required Charter Bus Insurance Coverage for Passenger Transport
- Feb 12
- 2 min read
Operating a charter bus or motor coach service comes with significant responsibilities both to passengers and to regulators. One of the most critical aspects of running a safe and compliant business is ensuring you have the right insurance coverage for passenger transport. Without proper coverage, a single accident could put your business at financial risk.
Federal and State Insurance Requirements
Passenger transport companies must comply with Federal Motor Carrier Safety Administration (FMCSA) regulations. According to the FMCSA carriers transporting 16 or more passengers are required to carry at least $5 million in liability coverage. State regulations may impose additional requirements, so it’s essential to check your state Department of Transportation (DOT) website for local mandates.
Essential Charter Bus Insurance Coverage
A complete charter bus insurance policy typically includes the following:
Commercial Auto Liability: Covers injuries and property damage resulting from accidents involving your buses. This is the core coverage required by law.
Physical Damage Coverage: Protects your buses against collision, fire, theft, and vandalism. Essential for preserving fleet value.
General Liability: Covers incidents not directly related to driving, such as accidents at your business facility or while passengers are boarding.
Workers’ Compensation: Mandatory if you employ drivers or staff, covering medical expenses and lost wages in the event of a work-related injury.
Umbrella or Excess Liability: Provides additional protection beyond primary liability limits, giving extra security for large claims.
Why Proper Coverage Matters
Having the right insurance ensures:
Compliance with federal and state laws
Protection for passengers and drivers
Coverage for property damage and liability claims
Financial stability after accidents or lawsuits
Underinsured or uninsured operations risk heavy fines, legal claims, and potential business closure.
Partner With a Specialist Insurance Provider
Charter bus insurance is complex and highly specialized. Partnering with a provider experienced in passenger transportation insurance is crucial. Wexford Insurance offers tailored solutions for charter bus operators, ensuring your coverage meets FMCSA requirements and protects your fleet, drivers, and passengers.
👉 Request a free charter bus insurance quote from Wexford Insurance to get accurate pricing and peace of mind, knowing your passenger transport business is fully protected.
