Sixteen seats is the line between $1.5M and $5M.

Commercial auto

Vehicles the business owns and the people who drive them for work.

Without it — The federal minimum for a passenger carrier is set by seating capacity, and crossing sixteen seats changes the number substantially.

Umbrella & excess liability

Extra limit stacked above general liability, auto and employers liability. Usually the cheapest million dollars on the policy.

Without it — A full vehicle produces many claimants from one event, which is how limits are exhausted.

Sexual abuse & molestation

Covers allegations of abuse by staff or volunteers. General liability usually excludes it outright, and any organization working with children, patients or vulnerable adults will be asked to carry it by name.

Without it — Carrying passengers, particularly minors on school, church and youth work, is an exposure general liability commonly excludes.

Liquor liability

If you serve alcohol, your general liability almost certainly excludes what happens after you serve it.

Without it — Alcohol served or permitted on board is a liability no freight operator has.

General liability

Third-party bodily injury and property damage. It is the line nearly every contract names by default.

Without it — Boarding, alighting and premises claims sit outside the auto policy.

Workers compensation

Required in almost every state the moment you have employees. Priced on payroll and class code, which is why the class code is worth arguing about.

Without it — Drivers, luggage handling and passenger assistance produce the injuries.

Auto physical damage

Damage to your own tractor and trailer. Primary liability pays for what you do to everyone else and nothing for your equipment, so without this a rollover you caused leaves you paying off a truck you can no longer run.

Without it — Coaches and stretch vehicles are expensive and slow to replace.

What is the federal minimum for a passenger carrier?

It is set by seating capacity. For-hire passenger carriers in interstate commerce need $5,000,000 for vehicles seating 16 or more passengers including the driver, and $1,500,000 for vehicles seating 15 or fewer including the driver. That is a different rule and a different number from the $750,000 that applies to general freight, and it is why adding a row of seats can change your obligation.

Does a 15-passenger van count as a bus?

For the financial responsibility rule it falls in the lower band, which is exactly why the seat count matters. Confirm the capacity as manufactured rather than as you use it, because the rule follows capacity rather than how many people you happen to carry.

We run party buses with alcohol on board. Is that a problem?

It is a different appetite and it needs saying up front. Alcohol on a moving vehicle combines liquor liability with passenger exposure and late-night driving, and a number of carriers that write charter work will not write it. Where it is disclosed it is placeable; where it is discovered, it is a coverage argument.

Why is abuse and molestation raised for this class?

Because passengers are in your care in a way freight never is, and school, church, youth and special-needs transport heighten it considerably. General liability commonly excludes abuse outright, so where the exposure exists it needs its own coverage, and the organizations contracting this work increasingly require it by name.

What does a bus and limousine operations insurance application ask for?

The applications for bus and limousine operations businesses ask about 4 things above all: how long have you been operating under your current name; what percentage of your trips involve each type of service you offer; how many of your vehicles have cameras or accident event recorders, what brand are they, and do they record inside, outside, or both; how long have any of your current auto insurance policies been in place. Have your insurance premium and claims history from the past few years, including company names, premiums paid, and total number of trips and details about your accident review process and procedures ready and a quote takes a day instead of a week.