The Federal Motor Carrier Safety Administration (FMCSA) released a report sharing data on crashes that took place 2019. It states that a total of 2,734 fatal crashes involved trucks and buses in 2019 in the United States Of America. As per their preliminary report released in January 2020, 3,087 people lost their lives in those crashes. In just California 277 people died, 3,939 people were hurt in crashes that involved a truck or a bus.

The above statistics should be enough reason for any owner who owns a single bus or a fleet of buses to purchase charter bus insurance. While shopping for insance, one must always pick a company or agent they trust and someone who understands the industry you are part of. With numerous changes in requirements, the agent you pick must be someone who will guide you to buy the best suited policy for your business.

In the event of an accident, the losses incurred by a charter bus owner could lead to insolvency of a business if the bus/buses are not insured. Much like auto insurance, charter bus insurance policy offers the types of coverages mentioned below;

Liability insurance

Being one of key insurance coverages you will purchase, liability insurance coverage covers you if your driver is at fault in a collision. It covers accident bills that could cause your business financial strain otherwise and is mostly mandatory by the law of USA. The coverage has two parts;

1. Bodily injury – In an accident, if your driver, whether hired or not is at fault and causes injury to another person/party involved, this coverage covers expenses related to medical care. will pay for their medical care namely emergency transport to the hospital, emergency medical services, extended hospital stays, the cost of rehabilitation and recuperation, and other medical expenses incurred due to the collision. It also covers funeral costs of the affected party if the injuries are fatal.
2. Property damage – If in a collision, your bus driver is at fault, the damage caused to the other party’s vehicle, property or objects is covered in this.

Worker’s Compensation Insurance

It is a legal requirement for charter bus companies to invest in workers compensation insurance for their employees as this will cover them incase the employee suffers injuries or sickness during the duration of the employment. This also makes employees feel protected and increases chances of them staying with your company.

Collision coverage

This coverage pays for damages caused to your charter bus in an accident whether you are at fault or not.

Comprehensive coverage

This coverage compensates you for losses incurred due to theft, vandalism, fire, damages from another object.

Uninsured/underinsured motorists

If in an accident the driver at fault is either uninsured or underinsured, this coverage pays for damages caused by them so that you don’t suffer financial losses.

Medical payments coverage

In a collision if any of the travellers/your passengers do not have health insurance, this coverage pays for medical expenses and covers costs related to that.

To further safeguard the financial interests of your charter bus business, you can purchase the following charter bus insurance coverages;

Insurance for Collision Deductible Waiver

Business Interruption Insurance

Property Damage or Bodily Injury Insurance

Towing Insurance

Rental Insurance

Umbrella Insurance

Specified Peril Insurance

As history often reminds us, the world during past economic crises presented people with only limited affordable health options. Fortunately, recent measures taken by Congress present us with opportunities to get us ourselves covered.

Here’s a complete guide to all the available options in hand.

Continuing a job-based coverage policy

If you wish to keep the coverage, know that you can do so for as long as 18 months under the Consolidated Omnibus Budget Reconciliation Act. However, you can avail of this option only if you choose to pay the total amount of your premium, which is what you would by default have to pay & also that what your employer would pay towards your premium. This is an excellent option that tends to cost more than Obama Care. However, it is better suited for Americans with an ongoing treatment as it enables you to visit the same doctor.

If you have no income as a result of job loss

As of today, if you reside in one of these 36 states, you can enjoy the benefit of a state health insurance program called Medicaid. Obamacare now enables residents of most states to avail of Medicaid if their monthly household income falls below a fixed amount – around $1400 for a single person or $2950 for a family of four. This should include all regular unemployment benefits, but not the $600 a week paid under the new relief legislation. As it happens to be, the ideal way to apply for Medicaid is through your state’s authorized agency. Typically, Medicaids have zero premiums, low co-payments, and also cover fewer doctors as compared to job-based insurance plans. You may find it harder to get covered if you live in a state outside the 36 and might have site parenthood or have to meet other criteria to get a single or affordable family insurance cover.

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Don’t have health insurance but would like to get one 

Under normal circumstances, you can enroll for an insurance policy once a year. However, in case of an unexpected change such as a job loss or divorce, you could apply for one when in need. The global pandemic has led many employers to stretch the rules and allow for more employees to apply for an insurance cover. The states of California, Colorado, Connecticut, Maryland, Massachusetts, Minnesota, Nevada, New York, Rhode Island, Vermont, Washington, and the District of Columbia are now permitting uninsured residents to enroll for Obamacare. Simply, visit their insurance marketplace sites to get started. Also, do check with your company’s HR staff if you are in fact eligible for a work-based insurance policy.

In need of a more comprehensive health plan

Insurance plans that are short term in duration presumably won’t cover the testing and treatment costs incurred for the coronavirus. With the pandemic not showing signs of slowing down anytime soon, we should armour ourselves with the necessary tools. Now would be the perfect time to switch to a comprehensive health plan such as Medicaid & Obamacare that ßare best suited for the current times we live in.

Bus business is a lucrative proposition when mined properly. But just like any other business, it’s exposed to certain occupational hazards with serious implications. That said you cannot let these vulnerabilities to eat into your profits, or worst still, push you out of business.

Imagine your bus rams into another vehicle or object, taking a toll on life and property. If your liability is established, you have to bear the brunt. You are required to fund the victim’s medical care, vehicle, and other damages. Failing this, your business and assets are exposed.

That’s why there is charter bus insurance. The coverage saves you from the financially crippling implications of accidents and related liabilities and helps keep your business and assets intact. All your liabilities are funded by the insurer, which otherwise need to be met out-of-pocket.

Minimum insurance coverage requirement for a bus:

A bus isn’t a passenger vehicle. It’s bigger, accommodates more people and causes more damage. So, the coverage requirements of a bus exceed that of a passenger vehicle by a margin.

Courtesy Federal Motor Carrier Safety Administration (FMCSA), for a bus accommodating 15 or more passengers, the minimum liability coverage should be $5,000,000. The minimum coverage requirement nosedives to $1,500,000 for a bus accommodating 14 or fewer passengers.

What determines your premiums?

However, size is not the sole factor to determine insurance costs. Other includes:

1. Type:

Buses come in all shapes – charter bus, party bus, coach bus, sightseeing bus, tour bus, and school bus. Different buses face a different set of risks, and their coverage requirements differ accordingly. Say, a school bus involves higher premiums vis-à-vis any charter bus, tour bus or private shuttle. The liability risk is higher when handling and transporting kids, that’s why.

2. Location:

The premium costs are also location-dependant. In certain states, the cost is way higher than the national average. A bus plying in rural areas will attract lower charter bus insurance costs than the one operating in an urban center. Again, higher liability risk accounts for the disparity.

3. Route:

How far the bus is driven also factors into premium costs. Interstate buses need to comply with federal laws that are stricter than the state ones. Hence, they require more spending.

4. Accident history:

The insurer will be factoring in your driver’s accident history to determine the costs. If it’s accident-free, expect cheaper premiums. If not, you are in for some additional expenses.

5. Worth of the bus:

That’s a typical no-brainer. The premium costs are bound to be higher for a high-value bus.

What’s covered?

In 2009, America had 56,000 bus crashes, which accounted for 254 lives and 20,000 injuries. The figures must have risen significantly over the years. That calls for insurance coverage to pay for liabilities stemming from bus crashes. Here’s what a typical bus insurance policy covers.

• Third-Party Injuries: Say, your bus crashes into another vehicle causing physical harm to passengers in that vehicle. The charter bus insurance coverage will ensure payouts for the victim’s medical care, ambulance fees, medications, surgery costs, hospital stays, rehabilitation, and more. In the case of a fatality, the victim’s funeral expenses are covered.

• Third-Party Damage: If your driver is responsible for crashing the bus into another vehicle or property, the damages thus sustained are covered. The insurer pays for the repairs required to restore the damaged vehicle or property to its former self.

• Your Passenger Medical Costs: The driver and passengers on your bus might sustain injuries in a crash. The insurance coverage comes in handy to pay for their medical care. Best of all, the insurer makes payouts, regardless of who’s at fault for the situation.

• Bus damage: Bus involves serious investment. Should it be damaged in a crash, you’ll bleed money on repairs and replacement. Let the bus insurance cover take up all the costs involved. The policy has three components that cover collision, non-collision and specified perils. It’s imperative in case the bus is leased or you are yet to pay for it in full.

• UMC: Another driver ramming his vehicle into your bus is also a possibility. However, if he is uninsured or underinsured, the compensation might be hard to come by. Don’t worry, as your insurer will pay for all the injuries and damages inflicted by him.