What Does Charter Bus Insurance Cover?
Accidents are inevitable especially if you are a vehicle owner or reside in an area that is prone to accidents more than others. As a charter bus owner, one must be sure to invest in charter bus insurance considering it as the most important step before starting their business.
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;
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;
- 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.
- 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.
This coverage pays for damages caused to your charter bus in an accident whether you are at fault or not.
This coverage compensates you for losses incurred due to theft, vandalism, fire, damages from another object.
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
Specified Peril Insurance