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 Illinois Gov. Pat Quinn.

SB 2524 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:

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.