By Stephane Babcock

When insurance companies decide on the monthly cost to have your car covered, they usually look at your driver history, postal code, marital status, daily mileage and the vehicle itself. While companies that insure school bus contractors look at similar types of data when calculating fleet premiums, they have to not only look at the company itself, but each individual driver it employs.

“Operators, especially ones transporting children, need to make sure all drivers are thoroughly reviewed through background checks and driver history references,” said Fran Walsh, vice president and senior bus underwriter for Lancer Insurance Company. “The motor vehicle record is all we would need for our files. All other correspondence should be kept in the employees personnel file.”

Aside from driver/accident historical data from the past five years, insurers look at safety practices/programs, areas of operation, the experience of the management, driver turnover and even technology.

“Technology can certainly make a school bus contractor more appetizing to our underwriters,” said Jeff Carlson. “Cameras inside the bus will certainly help identify claims that occur when students on the bus become unruly and cause injury. Child alert systems would also be considered an improvement of the risk.”

However, the inclusion of certain systems on your bus, like cameras, does not guarantee a discount.

“In the long run, the use of technology can reduce accidents and therefore impact loss history favorably. More favorable loss experience can translate into lower premiums,” said Michelle Silvestro from National Interstate Insurance Company. “We have a program for our customers for the use of accident event recorders. We believe this technology is key to changing driver behavior and making companies and the public safer.”

When it comes to shopping around for prices, school bus contractors do not have as many choices as the general public. According to Silvestro, of the approximately 3,000 insurance companies in the country, only about five to 10 underwrite insurance for school buses. But that shouldn’t stop contractors from researching their options.

“Given that insurance costs are usually one of the top three expenses for companies, I would strongly suggest that contractors educate themselves on all of the options available to them,” said Silvestro. “There are many options available to contractors to control their insurance costs. Be a smart insurance buyer. Build a relationship with an insurance company and insurance agent that understands your business.”

The relationship you have with your insurer includes regular updates of new drivers and any accidents your buses may get in.

“Accidents occur and that’s why you have insurance,” said Brian Brusoski, specialty program manager for Keystone Insurers Group. “What can affect the overall relationship of a contractor and insurance carrier is recurring accidents as this situation can be a signal of weak hiring practices or training. A good relationship between the contractor and carrier can head off or identify trends in accidents to target root causes. That way all parties assist each other.”

But what about non-automotive-related accidents? What happens when something happens “on” the bus that is associated a driver’s or student’s behavior?

“We also offer members [of certain associations] the unique coverage for abuse and molestation liability coverage as many contractors are being brought into lawsuits for situations occurring on bus,” said Brusoski.

Some of the examples of covered incidents can include a bus driver losing control and slapping a student across the face. In this instance, coverage would be provided for the bus contractor if he is named in a lawsuit for improper hiring or supervision. Bullying on the bus or sexual assault injury claims may also apply, according to Brusoski.

To receive the most complete and affordable coverage, keep the lines of communication open and always ask questions when you are unsure.

“We are in a business that understands there are going to be losses and it comes part and parcel with the insurance business and school bus contractors. It is our philosophy in our program to evaluate a company’s losses to make sure that they are doing everything they can to understand why it happened and how to prevent it from happening again. It is not our philosophy to charge higher premiums because a contractor has claims. Each contractor is evaluated on its overall merit,” said Capacity’s Carlson.