HBP Part 19.1.2 Charter Bus Insurance Requirements

Handbook of Business Procedures

Date published: April 13, 2010
Last revised: March 23, 2011
Issued by: Risk Management


A. Introduction

Requirements at The University of Texas at Austin for chartering buses are governed by The University of Texas System Policy UTS157, Automobile Insurance Coverage for Officers and Employees and General Requirements for the Use of Vehicles, Appendix C. Below is a brief list of some of the requirements, but university employees must comply with all requirements of Policy UTS157 when chartering buses. For further information or clarification, please contact the Accounting and Financial Management Risk Management team at oa.riskmgt@austin.utexas.edu.

B. Company Representations

  • All buses and equipment are clean, in good working order, and conform to proper standards of the industry.
  • Driving staff are properly certified and licensed; have been drug tested in compliance with any applicable laws, rules, and regulations; and conform to all applicable requirements for motor carrier drivers.
  • The charter bus company shall be reputable and known for superior skill and service.

C. Insurance Requirements

In addition to the standard Workers’ Compensation/Employer’s Liability (WC/EL) limits in the Office of General Counsel (OGC) standard agreement, the charter bus company should warrant that it has commercial insurance coverage consisting of commercial general liability insurance, including the following:

  • Blanket contractual liability
  • Broad form property damage
  • Personal and advertising injury
  • Completed operations/products liability
  • Medical expenses
  • Interest of employees as additional insureds
  • Broad form general liability endorsements

The insurance coverage should be for at least $5 million per occurrence. The charter bus company should also warrant that it has comprehensive automobile liability insurance covering all owned, nonowned, or hired automobiles to be used by the charter bus service, with coverage for at least $5 million Combined Single Limit Bodily Injury and Property Damage.

The contractor may obtain the $5 million required in the General Liability and Auto Liability policy by purchasing an umbrella or excess policy.

D. Contract Section Insurance Requirements

The contractor and its subcontractors must carry at least the following insurance coverage with companies having an A.M. Best Rating of A-, IV or better, and in the following amounts (unless otherwise specified):

  1. Workers’ Compensation Insurance with statutory limits, and Employer’s Liability Insurance with limits of no less than $1 million:
    • Employers Liability - Each Accident $1 million
    • Employers Liability - Each Employee $1 million
    • Employers Liability - Policy Limit $1 million
  2. Policies must include:
    1. Other States’ Endorsement to include Texas if business is domiciled outside the State of Texas
    2. A waiver of all rights of subrogation and other rights in favor of the university
    3. Commercial General Liability Insurance with limits of no less than:
      Each Occurrence Limit $1 million
      Damage to Rented Premises $100,000
      Medical Expenses (any one person) $10,000
      Personal and Advertising Injury $1 million
      General Aggregate $2 million
      Products - Completed Operations Aggregate $2 million
  3. Commercial Automobile Liability Insurance covering all owned, nonowned, or hired automobiles, with coverage for at least $5 million. Combined Single Limit Bodily Injury and Property Damage. Coverage shall not exclude passengers.
  4. Umbrella/Excess Liability Insurance (if limits are not met in primary insurance contracts) with limits of no less than $4 million per occurrence and aggregate with a deductible of no more than $10,000 and (i) providing coverage in excess of, and (ii) “following form” subject to the same provisions as the underlying policies required for General Liability and Commercial Auto Liability Insurance.

E. Contractor's Obligation

  1. Evidence which the university may accept at its sole discretion, proving the existence of all insurance promptly after the contract is signed and prior to the performance or continued performance of any services by Contractor under this Agreement.
  2. Additional evidence which the university may accept at its sole discretion of the continued existence of all insurance at least thirty (30) days prior to the expiration of any insurance. Insurance policies, with the exception of Workers’ Compensation and Employer’s Liability, will name the university as an Additional Insured and will provide that the policies will not be canceled until after thirty (30) days' unconditional written notice to the university.



Part 19. Risk Management - Table of Contents