School Bus Liability Insurance Bill Signed by Illinois Governor

A bill that updates and clarifies liability insurance standards for operators of buses by schools and other organizations has been signed by the Illinois governor.

Gov. Pat Quinn on Aug. 24 signed SB 2524, which details differences for purposes of liability insurance between school buses and buses operated by other groups serving children.

The bill decreases until Jan. 1, 2013, the required amount of insurance for certain vehicles to $25,000, down from $1,000,000, for any one person in any one accident, and $100,000, down from $5,000,000, for two or more persons in any one accident.

It also clarifies required liability insurance amounts for policies issued or renewed on or after Jan. 1, 2013.

According to the Illinois Legislative Information System, SB 2524 specifies that:

(1) any vehicle that is used for a purpose that requires a school bus driver permit and is used in connection with the operation of private day care facilities, day camps, summer camps, or nursery schools shall carry a minimum of liability insurance in the amount of $1,000,000 combined single limit per accident;

(2) all other vehicles which are used for a purpose that requires a school bus driver permit shall carry a minimum of liability insurance in the amount of $2,000,000 combined single limit per accident; and

(3) any commuter van or passenger car used for a for-profit ridesharing arrangement shall carry a minimum of liability insurance in the amount of $500,000 combined single limit per accident.

Insurance groups that worked with the legislature to amend the liability insurance requirements included the Independent Insurance Agents of Illinois, the Illinois Association of Mutual Insurance Companies (IAMIC), National Association of Insurance and Financial Advisors of Illinois (NAIFA IL) and the Illinois Insurance Association.

The National Association of Mutual Insurance Companies issued a statement commending the governor for signing the bill. “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,” stated Mark Johnston State Affairs Manager for NAMIC.

Topics Education Illinois