Indiana Gov. Pat Quinn signed into law an amendement that updates and clarifies liability insurance standards for schools and other organizations that operate buses in the state.
The bill, SB 2524, details differences for liability insurance purposes between school buses and buses operated by other groups serving children. It decreases until Jan. 1, 2013, the required amount of insurance for certain vehicles from $1 million to $25,000 for any one person in any one accident, and from $5 million to $100,000 for two or more persons in any one accident.
SB 2524 also clarifies required liability insurance amounts for policies issued or renewed on or after Jan. 1, 2013. Any vehicle used by a person with a school bus driver permit for a private day care facility, day camp, summer camp or nursery school must carry liability insurance with a minimum amount of $1 million for one person in one accident. For all other vehicles used by a person with a school bus driver permit, the minimum amount is $2 million for one person in one accident.
The Independent Insurance Agents of Illinois, the Illinois Association of Mutual Insurance Companies, the National Association of Insurance and Financial Advisors of Illinois and the Illinois Insurance Association were some of the insurance groups that worked with the legislature to amend the liability insurance requirements.
“This important piece of legislation affords much-needed clarification of the law to nonprofit agencies and groups that serve children by providing daycare and camps, including churches and faith groups serving urban and small rural communities that use a ‘church bus’ to provide these services," said Mark Johnston, state affairs manager for the National Association of Mutual Insurance Companies.
For more information about liability insurance for school buses, read "School Districts Minimize Safety Risks with Proper Insurance, Training" in the May issue of School Transportation News magazine.