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When a company books charter transportation for employees, clients, or event guests, the insurance question usually gets asked late, if at all. Risk managers who do verify coverage upfront save themselves a hard conversation if something goes wrong.
Vetting a vendor's insurance is only half the picture. The contract terms determine how a claim actually gets handled.
Commercial passenger vehicles are required to carry minimum liability coverage under FMCSA rules, but the federal minimum is often lower than what a corporate contract should require. For charter buses carrying 16 or more passengers, we recommend verifying at least $5 million in combined liability coverage, and confirming whether that figure is per-occurrence or aggregate, since the difference matters if multiple claims arise from one incident.
A certificate of insurance is a summary, not the policy itself, and it can be issued even on a policy that's about to lapse. Ask for the certificate to list your company as an additional insured for the specific date of service, not just a generic annual certificate, and confirm the policy's expiration date falls after your event.
Confirm whether the driver is a W-2 employee of the charter company or an independent contractor, since that affects which workers' comp policy would apply in an on-the-job incident and who bears responsibility if a driver-related claim comes up.
Charter USA works with corporate travel managers, government agencies, and event planners across the Southeast on charter and shuttle contracts.
Standard charter contracts often include indemnification clauses that shift certain liability back to the client company, particularly around passenger conduct or route changes requested by the client. Have legal review this section specifically rather than treating the contract as boilerplate, since the language varies more between vendors than most buyers expect.
Keep a copy of the certificate of insurance, the DOT number, and the signed contract on file for the duration of your relationship with a vendor, not just for the specific trip. If your company books charter transportation more than once or twice a year, this documentation should live with procurement or risk management, not just with whoever booked the trip.
Call 256-824-9797 to request our current insurance documentation and DOT safety record.
