Party bus insurance

Party bus insurance is a type of commercial auto policy that covers vehicles modified to transport groups for parties or special events, including liability, physical damage, and medical payments. Insurers like Progressive and Nationwide offer party bus coverage tailored for operators in states such as California and Texas.

Most policies require at least $1.5 million in liability limits, as mandated by the Federal Motor Carrier Safety Administration (FMCSA) for passenger carriers with over 15 seats. Typical coverages include general liability, bodily injury, property damage, uninsured motorist, collision, comprehensive, and medical payments.

Operators must provide proof of insurance to regulatory agencies before receiving authority to operate. Underwriting considers factors like driver experience, vehicle age, and safety features such as seat belts and fire suppression systems.

Premiums average $7,000 to $20,000 annually per vehicle depending on fleet size, claims history, geographic area, and usage patterns. State regulators may require additional endorsements or filings such as Form E or MCS-90 for public transportation compliance.

Claims most frequently arise from passenger injuries due to alcohol-related incidents or accidents involving multiple vehicles, as transmitted by the Insurance Information Database. Exclusions typically apply to criminal acts by drivers and mechanical failures not resulting from an accident.

Party bus insurers often mandate regular maintenance records and driver training documentation for renewal eligibility.