Charter And Tour Bus Insurance Policy Information
Charter And Tour Bus Insurance. Whether you transport tourists or you take people to and from events, owning a charter bus company comes with a lot of responsibilities. Not only do you need to ensure that your patrons are comfortable, arrive on time, and all of their needs are being met, above all else, you must ensure they're safety.
Commercial interstate bus lines provide transportation to passengers in two ways. The first provides scheduled services along fixed routes according to specified schedules. Passengers for these buses purchase tickets online, at a ticket booth, or automated ticket dispenser.
The second offers a service to charter a bus for a few hours, a day, or a longer period of time for a specific trip or tour.
Passengers for these services purchase tickets through the group arranging the charter. Most interstate bus lines are required to accommodate passengers with mobility limitations. Some provide this service with specially-equipped buses.
As the owner and operator of a tour bus company, you are liable for any mishaps that may arise. Though you always go the extra mile to ensure everything operates smoothly - employ a team of expertly trained professionals, tour guides, and other professionals, and keep your fleet of vehicles in tip-top condition - you never know when unforeseen events will occur.
How can you keep yourself and your company properly protected from the unexpected? - By investing in the right type of charter and tour bus insurance coverage.
What type of insurance do tour bus drivers need? How much coverage should you carry? You can find the answers to these questions below.
Charter and tour bus insurance protects your company from lawsuits with rates as low as $67/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked charter and tour bus insurance questions:
- What Is Charter And Tour Bus Insurance?
- How Much Does Charter And Tour Bus Insurance Cost?
- Why Do Charter And Tour Bus Companies Need Insurance?
- What Type Of Insurance Do Charter And Tour Bus Operators Need?
- What Does Charter And Tour Bus Insurance Cover & Pay For?
What Is Charter And Tour Bus Insurance?
Charter and tour bus insurance is a type of insurance that is specifically designed for bus companies that operate charter and tour buses. This type of insurance provides coverage for a wide range of risks that are associated with the operation of these types of buses, including liability, collision, and comprehensive coverage.
Liability coverage is the most basic type of coverage that is included in charter and tour bus insurance. It provides protection for the bus company in the event that they are found to be at fault for an accident or other incident that causes injury or damage to other parties. This coverage can include both bodily injury and property damage liability.
Collision coverage is another type of coverage that is typically included in charter and tour bus insurance. This coverage provides protection for the bus itself in the event of an accident or other incident that causes damage to the bus. This coverage can also include protection for any equipment or other items that are on the bus at the time of the incident.
Comprehensive coverage is also typically included in charter and tour bus insurance. This coverage provides protection for the bus and its contents in the event of non-collision incidents such as theft, vandalism, or natural disasters.
In addition to these basic types of coverage, charter and tour bus insurance can also include a number of additional coverage options such as medical payments, uninsured motorist coverage, and no-fault coverage. These options can provide additional protection for the bus company and its passengers in the event of an accident or other incident.
Overall, charter and tour bus insurance is an essential type of coverage for any bus company that operates charter and tour buses. It provides protection for the bus company, its drivers, and its passengers in the event of an accident or other incident, helping to ensure that everyone is covered in the event of a loss.
How Much Does Apartment Building Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small tour & charter boss operators ranges from $69 to $97 per month based on location, number of units, payroll, sales and experience.
Why Do Charter And Tour Bus Companies Need Insurance?
Charters and tour buses are considered commercial vehicles and are required to have insurance to protect both the company and its passengers in case of any accidents or incidents. These types of vehicles are commonly used to transport large groups of people on long trips, often to places that may be unfamiliar to the passengers. As a result, the risk of accidents or other incidents is higher than with other types of vehicles.
In addition to protecting the company and its passengers, insurance also helps to protect other drivers on the road. A charter or tour bus can cause significant damage in an accident, and without insurance, the costs of repairing or replacing damaged vehicles and property would fall on the shoulders of the victims.
Furthermore, charter and tour bus insurance also protects the company's assets in case of any legal action taken against them. If someone is injured in an accident, they may file a lawsuit seeking compensation for their injuries. Without insurance, the company would have to pay for legal defense costs and any settlements or judgments out of their own pocket.
In summary, charters and tour buses need insurance to protect themselves, their passengers, other drivers on the road, and their assets in case of accidents or incidents. Without insurance, the risks and costs of operating these types of vehicles would be much higher and less manageable.
What Type Of Insurance Do Charter And Tour Bus Operators Need?
The insurance needs of charter bus operators are complex and vary according to the specific needs of each individual company. That's why it's important to speak to a reputable agent that is knowledgeable about the complexities of insurance coverage for charter bus operators.
With that said, there are certain types of charter and tour bus insurance that all operators in this industry need to carry. Examples include:
- Commercial Auto Liability - Every charter bus operator must carry commercial auto liability coverage. If a bus in your fleet is involved in an accident, this type of insurance protects other motorists who may have been injured, including any medical care that may be required. It will also cover the cost of any damages to other vehicles.
- Commercial General Liability - In addition to auto liability insurance, you'll also need to carry commercial general liability coverage. This policy covers third-party personal injury and property damage liability claims that may be filed against you. For instance, if an employee damages a passenger's luggage and the passenger files a lawsuit against you, your commercial general liability policy would assist with the legal expenses, as well as any damages that you may be found liable for.
- Commercial Property - If your garage, your dispatch center, or any other property that is associated with your charter bus company is damaged in a fire, a burglary, an act of vandalism, etc., this insurance will help to pay for any repairs or replacements that need to be made.
- Workers Compensation - As an employer, you are responsible for the safety and well-being of your staff. If any member of your staff - from those who work in your dispatch center to your drivers - suffers a work-related injury, this type of coverage will cover any medical care that they may require, as well as any wages that they may lose while recovering.
In addition to these industry specific coverage types, you may need other types of insurance for your charter and tour bus business that are not mentioned above. For instance, umbrella insurance offer excess liability and cyber liability protect against data breaches.
Tour And Charter Buses Risks & Exposures
Commercial Auto exposure is very high as an accident can result in bodily injury to numerous passengers as well as property damage to bridges, buildings, guardrails, other structures, and vehicles belonging to others. All drivers must be carefully screened and trained to safely operate buses under all kinds of conditions, including adverse weather, construction impediments, darkness, and heavy traffic. Training must be ongoing, with regular reviews.
Drivers must hold commercial drivers licenses (CDL's) with a passenger endorsement. MVRs must be acceptable and checked on a regular basis. Full medical exams are required every two years. Random drug and alcohol testing should be mandatory. Schedules should permit adequate breaks for drivers to maintain alertness.
Vehicles must be maintained on a regular basis with records kept at a central location. A fire extinguisher and emergency first aid kit should be on board each bus. To prevent vandalism, each bus should be equipped with oversized rear mirrors and surveillance cameras. Due to increased concerns about security, hands-free two-way communication and GPS systems should be installed on all buses.
Fire, explosion, and terrorism exposures increase when all buses are parked at one location. Splitting the fleet and locating it at more than one place can be an effective risk management tool.
While seat belts are not mandated on public buses, handrails should be in place, floors should be slip-resistant, and sturdy poles should be available for passengers standing during transport. Emergency exits should be provided. Windows should be shatterproof.
Premises liability exposure is high due to the number of visitors to terminals and boarding areas. To prevent slips and falls, flooring should be in good condition with no frayed or worn spots on carpet and no cracks or holes in flooring. Spills should be cleaned up promptly. Steps and uneven floor surfaces should be prominently marked. There should be sufficient exits that are well marked with backup lighting systems in case of power failure.
Good housekeeping is essential. Security is important, especially for children and in restrooms. Bus lines can be a target for terrorist activity. There should be uniformed security guards on duty any time the terminal is open, and a disaster plan in place for unexpected emergencies. Off-premises bus shelters should be lighted and patrolled on a regular basis.
Personal injury exposures include allegations of assault and battery, discrimination, improper detention, invasion of privacy, and wrongful ejection.
Chartered bus services often arrange tours, lodging, and provide a variety of services, all of which increase the liability exposure. Certificates of insurance should be obtained from each provider from which services are contracted.
Environmental impairment exposure can be high due to the storage of fuel and the waste disposal of fluids used for servicing and repairing buses. All tanks, underground or above, must meet state or federal regulations and be routinely tested for leakage. Spillage and leaking of pollutants into the air, ground, or water can result in high cleanup costs and fines.
Spill procedures must be in place to prevent the accidental discharge of sludge from water reclamation systems used in washing buses. Contracts should be in place to dispose of all environmentally dangerous chemicals.
Workers compensation exposure is moderate from driving and maintenance and repair activities. Drivers work alone, often after dark. Ergonomically designed seats can reduce back and leg injuries to drivers who sit in the same position for hours at a time. Drivers can be injured in collisions. Long distance driving must be tightly controlled. Physical attacks can occur during robbery and hijack attempts or dealing with unruly passengers. Drivers should be trained to deal with these situations.
Two-way communication systems are vital to attract assistance in the event of an emergency. Back injuries, hernias, strains, and sprains can occur while lifting and aiding passengers. Garage employees can be injured by vehicles falling from hoists, strains, sprains and other lifting injuries.
Good housekeeping is critical to reduce injury from slips, trips, and falls. Burns, eye injuries and respiratory problems can occur with the welding and painting. Dermatitis can result from employees coming into contact with harsh cleaning detergents. Repair areas should be properly ventilated. Proper safety equipment is required.
Property exposures include offices, ticket purchasing booths or automated ticket dispensers, a passenger waiting area, garages for bus repair, and a parking area for buses when not in use. There may be restaurants or vending machines to serve passengers. Cooking surfaces must be properly protected. Waste receptacles should be provided throughout the facility and emptied regularly to prevent the buildup of large quantities of trash. Vandalism and smoking are a concern.
There should be security guards available to prevent problems. The repair garage will include flammable liquids - paint, gasoline and diesel fuel - and heat-producing activities such as welding. Flammable liquids and heat-producing activities must be separated from combustibles to prevent fire and explosion.
All spray-painting should be conducted in a spray booth with explosion-proof fixtures. Poor housekeeping is a serious fire hazard. Unless stored and disposed of properly, oily rags can spontaneously combust and cause a fire.
Inland marine exposures include accounts receivable for billings, bailees, computers, and valuable papers and records. Bailees exposure comes from the handling of passengers' luggage and storing it on the bus. All luggage should be clearly marked so it can be returned to the proper owner, and the storage area should be kept locked at all times. Computers and satellite tracking systems may be used to track buses and maintain contact with drivers.
All data must be duplicated and stored off site so it can be easily replicated in the event of a loss. If mechanics use their own tools for repair and servicing the buses, an employees' tools floater may be needed.
Crime exposures are from employee dishonesty and money and securities. Background checks, including criminal history, should be performed on all employees handling money. Cash windows should be monitored with verification that receipts and money match on each drawer. All internal ordering, billing, disbursements, and reconciliation of bank statements must be handled as separate job duties.
Appropriate security methods, including armed guards and armored trucks, are important at deposit time. There should be surveillance cameras on automated ticket dispensers to reduce the potential for theft. Chartered operations will not have the same money and security concerns since payment is made in advance.
What Does Charter And Tour Bus Insurance Cover & Pay For?
Charter and tour buses can be sued for a variety of reasons, including accidents, injuries, property damage, and negligence. Insurance can protect these companies by providing coverage for legal costs and damages resulting from a lawsuit. Here are a few examples of potential lawsuits and how insurance can help:
- Accidents: If a charter or tour bus is involved in an accident, they may be sued for damages to other vehicles or property, as well as injuries to passengers or other drivers. Insurance can help pay for legal defense costs and any damages awarded in the lawsuit.
- Negligence: If a charter or tour bus company is found to be negligent in their operations, they may be sued for injuries or damages resulting from that negligence. For example, if a bus driver is found to be driving under the influence of drugs or alcohol, the company may be sued for damages. Insurance can help pay for legal defense costs and any damages awarded in the lawsuit.
- Breach of Contract: If a charter or tour bus company fails to fulfill their obligations under a contract, they may be sued for breach of contract. For example, if a company fails to provide a bus for a scheduled tour, they may be sued for damages. Insurance can help pay for legal defense costs and any damages awarded in the lawsuit.
- Discrimination: If a charter or tour bus company is found to be discriminating against passengers based on their race, gender, religion, or other protected characteristic, they may be sued for discrimination. Insurance can help pay for legal defense costs and any damages awarded in the lawsuit.
In summary, insurance can provide valuable protection for charter and tour bus companies facing lawsuits. It can help pay for legal defense costs, as well as any damages awarded in the lawsuit. It's essential for these companies to have adequate insurance coverage to protect themselves and their passengers.
Commercial Insurance And Business Industry Classification
- SIC CODE: 4141 Local Bus Charter Service, 4142 Bus Charter Service (except local), 4173 Bus Terminal and Service Facilities
- NAICS CODE: 485510 Charter Bus Industry, 485210 Interurban and Rural Bus Transportation, 487110 Scenic and Sightseeing Transportation, Land
- Suggested Workers Compensation Code(s): 7382 Bus Co. - All Other Employees & Drivers, 8385 Automobile - Rental Co. - Garage Employees, 8810 Clerical Office Employees NOC
Description for 4141: Local Bus Charter Service
Division E: Transportation, Communications, Electric, Gas, And Sanitary Services | Major Group 41: Local And Suburban Transit And Interurban Highway Passenger Transportation | Industry Group 414: Bus Charter Service
4141 Local Bus Charter Service: Establishments primarily engaged in furnishing local bus charter service where such operations are principally within a single municipality, contiguous municipalities, or a municipality and its suburban areas.
- Bus charter service, local
Description for 4142: Bus Charter Service (except local)
Division E: Transportation, Communications, Electric, Gas, And Sanitary Services | Major Group 41: Local And Suburban Transit And Interurban Highway Passenger Transportation | Industry Group 414: Bus Charter Service
4142 Bus Charter Service, Except Local: Establishments primarily engaged in furnishing bus charter service, except local, where such operations are principally outside a single municipality, outside one group of contiguous municipalities, and outside a single municipality and its suburban areas.
- Bus charter service, except local
Description for 4173: Bus Terminal and Service Facilities
Division E: Transportation, Communications, Electric, Gas, And Sanitary Services | Major Group 41: Local And Suburban Transit And Interurban Highway Passenger Transportation | Industry Group 417: Terminal And Service Facilities For Motor Vehicle
4173 Terminal and Service Facilities for Motor Vehicle Passenger Transportation: Establishments primarily engaged in the operation of motor vehicle passenger terminals and of maintenance and service facilities, not operated by companies that also furnish motor vehicle passenger transportation. Establishments that are owned by motor vehicle passenger transportation companies and are primarily engaged in operating terminals for use of such vehicles are classified in the same industry as the establishments providing the motor vehicle transportation. Separate maintenance and service facilities operated by companies furnishing motor vehicle passenger transportation should be treated as auxiliaries.
- Bus terminal operation
- Maintenance facilities for motor vehicle passenger transportation
Charter And Tour Buss Insurance - The Bottom Line
To find the best fit coverage for your company, speak with an agent, to discuss the possibility of a specialized policy that combines these coverages and to find out what other coverage you may need, and how much you need to carry.
Additional Resources For Commercial Auto Insurance
Learn about small business commercial auto insurance which includes liability and physical damage protection for vehicles that are used for business purposes.
- Insurance Automotive Terms Glossary
- Amazon Delivery Drivers
- Ambulance Services
- Big Rig Truck
- Bobtail Non-Trucking Liability
- Charter And Tour Bus
- Commercial Auto
- Commercial Auto Liability
- Commercial Electric Vehicle Insurance
- Commercial Van
- DoorDash, GrubHub & Uber Eats Drivers
- Dump Truck
- Food Truck
- Freight Forwarder
- Household Goods Moving
- Motor Truck Cargo
- Non-Owned And Hired Auto Liability
- Owner Operator
- Pizza Delivery
- Tow Truck
- Specialty Automobiles, Trucks And Recreational Vehicles
- Specialty Physical Damage
Commercial auto insurance is a type of insurance that provides coverage for vehicles used for business purposes. This includes vehicles such as delivery trucks, company cars, and other vehicles that are used to transport goods or employees.
Commercial auto insurance is necessary for businesses that rely on their vehicles to conduct their operations. It helps to protect the business from financial losses due to accidents, theft, or other unexpected events. It also helps to protect the business from potential lawsuits that may arise from accidents involving their vehicles.
There are several types of coverage options available under business auto insurance policies. These include:
- Liability coverage, which covers damages or injuries that you or your employees cause to others while operating a business vehicle.
- Physical damage coverage, which covers damages to your own vehicle, is also available.
- Other coverage options may include medical payments, uninsured or underinsured motorist coverage, and rental reimbursement.
It is important for businesses to carefully consider their commercial auto insurance needs and to choose a policy that offers the right level of coverage. This can help to ensure that the business is protected in the event of an accident or other unexpected event.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Accounts Receivables, Computers, Motor Truck Cargo, Valuable Papers and Records, Employee Dishonesty, Money and Securities, General Liability, Employee Benefits, Umbrella, Motor Carriers Liability and Physical Damage, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Flood, Mobile Equipment, Signs, Warehouse Operators' Legal Liability, Cyber Liability, Employment-related Practices, Environmental Impairment, Underground Storage Tank, Stop Gap Liability and International Coverages.