News & Insights

Insurance requirements for school bus operators often times differ from state-to-state. Some states have specific requirements for school buses used in home-to-school transportation, while others only impose minimum insurance requirements on specific types of transportation, such as charter work. For school transportation operators, sometimes federal requirements apply as well. Continue reading for a brief overview of what minimum insurance requirements could apply to Pennsylvania school transportation operators.

As noted above, some states specifically require minimum levels of insurance for typical school bus home-to-school operation. For example, Texas requires all school bus operators to maintain liability insurance of at least $500,000 combined single limit. In Pennsylvania, however, there are no specific minimum levels of insurance required for school buses operating in home-to-school transportation. V.T.C.A. Transportation Code §643.1015.  Instead, Pennsylvania law provides that all vehicles transporting students for hire must be covered by a public liability insurance in an amount required by the school district. 24 P.S. §13-1362. In other words, for most school bus operators in Pennsylvania, your minimum level of insurance required will be established by contract rather than by law.

Some school bus operators perform services other than home-to-school transportation, such as intrastate charter trips for the general public. As this type of transportation is governed by the Pennsylvania Public Utilities Commission (PUC), applicable PUC regulations will apply. PUC requires common carriers and contract carriers of passengers to maintain certain minimum levels of insurance depending on the size of the vehicle. 52 Pa. Code §31.11. Liability insurance for a vehicle transporting fewer than 16 passengers must not be less than $35,000 (with coverage split in the amounts of $15,000 bodily injury per person, $30,000 bodily injury per accident, and $5,000 property damage per accident). Liability insurance must not be less than $1 million for vehicles transporting 16 to 28 passengers, and not less than $5 million when transportation more than 28 passengers.

School transportation contractors that perform transportation across state lines may also be subject to FMCSA financial responsibility requirements. Federal financial responsibility regulations require liability coverage in an amount not less than $1.5 million when operating a vehicle with a seating capacity of15 passengers or less, and not less than $5 million when operating a vehicle with a seating capacity of 16 or more. 49 C.F.R. §387.33. But notably, these requirements explicitly do not apply to vehicles transporting only school children and teachers to and from school or to a vehicle operating under contract providing transportation to preprimary, primary, and secondary students for extracurricular trips that are organized, sponsored, and paid for by the school district. 49 C.F.R. §387.27.

If you have questions about what insurance requirements apply to your operations, contact help@rckelly.com or call us at 215-896-3846.