APRIL,
1965
WISCONSIN
SCHOOL
BOARD
NEWS
LEGAL COMMENT
This comment is published as a matter of qeneral information to aU W,A.S.B. members. Individual members when confronted with a matter of the nature dl.~cussed in this comment should consult local school district counsel. SCHOOL BUS LIABILITY INSURANCE
School Districts are liable for personal injuries and property damage caused by the negligence of its officers, agents and employees in the operation of school buses. Wisconsin Statutes provide that boards of school districts which operate or contract for school bus service must procure liability insurance coverage for injury to persons and property. However, a school district which contracts for school bus service may require that the contract operator furnish the liability insurance in which case there must be filed with the clerk of the school district a certificate of insurance to the effect that such coverage has been obtained and is in effect. The liability insurance policy for a school bus must cover the owner of the bus, the operator and the school district, and evidence of the coverage provided must be filed with the Motor Vehicle Department as a condition to the issuance of a license to operate a school bus. A stated minimum amount of liability insurance coverage for various sizes of school busses is also required by statute. Irt general, the minimum is $10,000 Per person and $5,000 for property damage on school owned busses. Somewhat higher minimums are provided for non-owned busses used for transportation of school students under contract with the owner-operator. The minimum amount of aggregate coverage, per accident, for personal injury is scheduled with reference to the seating capacity of the busses; for instance, $75,000 of such coverage is required for a school-owned bus having a seating capacity of more than 24 but less than 37 passengers. A school district board does not adequately protect the school district from the risk of liability if it obtains only the minimum required amount of school bus liability insurance. The statutory minimums do not furnish any assurance that the school district is insulated from liability for a greater amount. A person suffering damage from a school bus accident, may, upon establishing the school district's legal liability, recover such sum as will reasonably compensate him for his injury up to the amount of $25,000 in most all instances and without limit as to amount in certain situations depending on the ownership of the school bus, the person operating it, the nature of the negligent act, etc. Considering the extent of the school district exposure to possible liability, it is suggested that the school district board require insurance coverage in an amount which is realistic in relation to the risks. It is not the purpose of this co,nment to suggest specific amounts of coverage. Reasonable persons, considering this matter, do and will continue to differ on his point. It is, however, the writer's informal pergonal opinion that no school board shoukl consider coverage of less than $25,000 per person for Personal injury and $25,000 for property damage on non-owner school busses hired under contract with third parties and that $50,000 of coverage per person for personal injury and $50,000 for property
damage is probably a minimum reasonable amount of coverage to be considered for school busses owned or operated directly by the school district. The total insurance provided, per accident, should also be sufficient in amount to reasonably protect the school district from the exposure to which it is subjected, having in mind the hazards including the size anc~ capacity of the bus or busses to be insured. School district boards might well consider with the school bus insurer the advisability of coverage under a newer aggregate coverage type policy. These policies provide for a stated total amount of coverage per accident without any limitation on paymcnt to each injured person on account of personal injury or property damage.