Understanding the insurance coverage available in bus accident cases helps injured passengers know what compensation may be available and from which sources. Bus accidents often involve multiple insurance policies, and identifying all applicable coverage maximizes potential recovery.

Commercial Bus Insurance Requirements

Bus companies must carry commercial auto liability insurance meeting minimum requirements. Federal regulations require interstate bus carriers to maintain at least $5 million in liability coverage. State requirements for intrastate carriers vary but typically mandate at least $1 million to $5 million depending on vehicle size and passenger capacity.

This substantial coverage is good news for injured passengers—it provides a source of compensation for serious injuries that might exceed limits for ordinary vehicle accidents.

Types of Coverage

Liability coverage pays for injuries and damages the bus company causes to others. This is the primary coverage source for passenger injury claims. It covers medical expenses, lost wages, pain and suffering, and other damages up to policy limits.

Uninsured/underinsured motorist coverage may apply when another vehicle causes the accident and that driver lacks adequate insurance. The bus company's UM/UIM coverage can provide additional recovery.

Medical payments coverage pays medical expenses regardless of fault, usually with lower limits than liability coverage. This can provide quick payment while liability claims are pending.

Government Transit Insurance

Public transit authorities may self-insure rather than purchasing commercial policies. Self-insured governments pay claims from their own funds up to applicable damage caps. Some purchase excess coverage for claims exceeding self-insured retention.

Government claims involve special procedures including notice requirements and potential damage caps. Even with large self-insurance funds, recovery may be limited by statutory caps.

Multiple Insurance Sources

Bus accidents often implicate multiple insurance policies:

  • Bus company's commercial auto policy for driver negligence and vehicle defects
  • General liability policy for premises claims (station injuries) or operations beyond auto coverage
  • Excess/umbrella policies providing additional limits above primary coverage
  • Other drivers' liability insurance when third parties cause or contribute to accidents
  • Your own auto insurance for UM/UIM claims or medical payments
  • Health insurance for medical treatment (subject to subrogation)

Identifying all applicable coverage sources requires thorough investigation. Experienced attorneys know what questions to ask and documents to request.

Insurance Company Tactics

Insurance companies protect their financial interests, not yours. Common tactics include:

Quick settlement offers before you understand injury severity or claim value. Never accept early offers without legal evaluation—they're almost always inadequate.

Recorded statements designed to get admissions that can be used against you. Adjusters are trained to ask questions that elicit damaging answers.

Surveillance to find evidence that injuries aren't as severe as claimed. Don't exaggerate—but don't downplay injuries either.

Delay tactics hoping financial pressure will force acceptance of low offers. Insurance companies earn investment income while claims remain unpaid.

Dealing with Insurance Adjusters

Report the accident to your own insurance company as required by your policy, but be cautious with details. You're generally not required to give recorded statements to the bus company's insurer before consulting an attorney.

Don't discuss fault, injuries, or treatment in detail with any adjuster. Don't sign medical authorizations giving broad access to your records. Don't accept settlement offers or cash "advances" that may waive future claims.

Your Own Insurance

Your personal auto insurance may provide additional coverage:

Medical payments/PIP coverage can pay medical bills regardless of fault, providing immediate help while liability claims proceed.

Uninsured/underinsured motorist coverage applies if another vehicle caused the bus accident and lacked adequate insurance.

Check your policy for applicable coverage and report the accident to preserve your rights under these provisions.

Maximizing Insurance Recovery

To maximize insurance recovery: document everything thoroughly, get prompt medical treatment and follow all recommendations, preserve evidence including photos and witness information, and consult an attorney before accepting any settlement or giving statements.

Attorneys experienced in bus accidents understand insurance coverage structures, can identify all applicable policies, and negotiate effectively with insurers who might otherwise take advantage of unrepresented claimants.