Business of Buses: Understanding Commercial Auto Insurance

Commercial auto insurance is essential for companies operating sightseeing and tour operation buses. It offers protection for these businesses that transport groups of people such as tourists, students, families, athletes, special interest groups, corporate groups, etc. With that comes certain risks such as harm to passengers, pedestrians, or other drivers. If this happens to a transportation business that doesn’t have commercial auto insurance this could lead to lawsuits that could inflict serious financial harm against the business.

These types of businesses face unique challenges. That’s why knowing everything you can about commercial auto insurance is vital to successfully operating a sightseeing or tour operations business. You have to understand the intricacies of commercial auto insurance and how it’s designed to safeguard your business.

Accidents and Potential Roadblocks


Spending a lot of time on the road comes with a variety of risks for sightseeing buses. One of the more common types of accidents is vehicle collisions. This can involve the bus and other vehicles, pedestrians, or stationary objects. It can most likely happen when the bus is traveling along a busy road or when the bus is making a turn.

Passenger Injuries

People are often getting on or off the bus which can lead to passenger injuries. Passengers can fall, trip, or suffer other forms of accidents while on the bus. It’s likely to happen while the bus is crowded or if the bus is forced to perform a sudden stop or turn.

Mechanical Failures

A vehicle breakdown or malfunction is a risk that bus companies have to realize. It can cause an accident, delay, or disruption in service.


Buses have been targets for criminals in the past, so there is a possibility that a sightseeing bus or tour operations bus can be subject to theft or vandalism.

Why You Shouldn’t Ditch the Insurance

When you don’t have commercial auto insurance you can leave your business vulnerable to several potential outcomes, some of which could result in your business shutting down.

Financial Liability

If you do not have adequate commercial auto insurance your business could be responsible for costs related to accidents, injuries, or property damages. Your company may also be on the line for covering medical fees, vehicle repairs, and legal fees. Depending on the fee, it could cripple your business financially.

Legal Issues

Without commercial auto insurance, your business may not be in compliance with state and federal laws. This could result in fines, penalties, or the suspension of your business operations.

Lacking Protection

Your business is vulnerable to risks such as accidents, thefts, vandalism, or natural disasters when you do not have commercial auto insurance. This can leave your business in financial trouble as well.

Business Opportunities

Some companies will hesitate to form partnerships with sightseeing or tour operations businesses if they do not carry commercial auto insurance. 

The Road To Best Safety Practices

There are several things businesses can do to make sure they are safely operating their buses. These practices will help ensure your business can continue operating without disruption.

Hiring Trained Drivers – When you hire drivers who are skilled in operating a bus, you can lessen the chance of an accident occurring.

Prioritizing Safety – Make sure your workers know about the importance of safety. This will hopefully create good habits that can help to avoid accidents or injuries.

Vehicle Maintenance – You should regularly maintain your vehicles. This will help to identify issues before they become serious problems. You should also address these issues quickly.

Record Keeping – It’s a good idea to keep up with all of the records that could be important for your vehicle. This includes maintenance records, driver qualifications, and incident/accident records. You should also keep records that are mandated by state or federal laws.

Insurance Coverage – You need commercial auto insurance to safely operate your fleet of vehicles. It makes sure all of your assets are adequately protected.

Other Useful Forms of Insurance

Aside from commercial auto insurance, it will be crucial for a transportation business to have protection in other areas.

Liability Insurance – This protects your business against third-party claims regarding bodily injury, property damage, or personal injury that happens while a bus is on the road. It covers accidents such as slips and falls with financial protection.

Umbrella Insurance – This allows your business to extend its coverage beyond the limits of original policies like commercial auto insurance. It acts like another layer of protection for your business.

Workers’ Compensation Insurance – This is a must-have for transportation businesses that have employees. It provides coverage for medical fees, lost wages, etc. Workers’ compensation insurance is for times when a worker is injured or becomes sick while working.

KF&B Insurance: Guiding You Toward Success

KF&B Program Managers and Insurance Services is your #1 choice for transportation insurance programs. We can help you find insurance policies that will best protect your transportation business. Our services can cover businesses with fleets that include charter buses, sightseeing buses, tour buses, shuttle buses, luxury sedans, SUVs, limousines, town cars, shuttle vans, and more.

Please contact us to get in touch with one of our team members. We are looking forward to helping your business succeed!