Last Updated: February 21, 2024, 12:05 pm by TRUiC Team

Bus Tour Business Insurance

Getting insurance for your bus tour business is essential.

Bus tour businesses need to be protected against things like claims of property damage, personal injury, and breaches of contract.

For example, your business could be sued for property damage if one of your drivers is involved in an accident with another road user.

We’ll help you find the most personalized and affordable coverage for your unique business.

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Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for a Bus Tour Business

General liability insurance is — generally speaking — one of the most important insurance policies for bus tour businesses. 

Some of the risks general liability insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

Some other policies that may also be beneficial for your bus tour business include:

  • Commercial auto insurance: As your business will be driving buses around on public roads, it is legally required to obtain this policy in case it is involved in an accident.
  • Workers’ compensation insurance: Additionally, since your business will need to hire employees (whether part-time or full-time), it will also be legally required to carry this policy.
  • Commercial property insurance: This policy will cover the cost of repairing or replacing any of your business’s real estate, equipment, and supplies from any certain, specified risks.

Make sure to keep an eye out for the following two key types of insurers when shopping for business coverage:

  • Traditional brick-and-mortar insurers — Firms with insurance agents and physical premises.
  • Online insurers — Firms that utilize AI to offer quotes instead of insurance agents and are purely based online.

Let's Find the Coverage You Need

The best insurers design exactly the coverage you need at the most affordable price.

Cost of General Liability Insurance

On average, bus tour businesses in America spend between $450 - $1,000 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a bus tour business to other professional industries using the graph below.

Several factors will determine the price of your policy. These include your:

  • Location
  • Deductible
  • Number of employees
  • Per-occurrence limit
  • General aggregate limit

You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.

A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.

Graph showing average price of general liability insurance prices per industry

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Find the Best Rate

Discover the best coverage at the lowest rate in our cheapest business insurance review.

Common Situations That General Liability Insurance May Cover for a Bus Tour Business

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Example 1: As one of your drivers loads a passenger’s luggage, he accidentally drops a bag filled with expensive camera equipment. General liability insurance would pay to replace the passenger’s damaged property.

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Example 2: While exiting the bus, a passenger falls off the staircase, hits her head, and suffers a concussion. She decides to sue your business for damages. General liability insurance would pay for your legal defense costs and any required settlement.

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Example 3: When a passenger gets trapped in the bathroom on the bus and suffers an asthma attack, she needs immediate medical treatment. She demands you pay for her medical care. General liability insurance would cover her medical treatment.

Other Types of Coverage Bus Tour Businesses Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:

Commercial Auto Insurance

Any vehicle you use primarily for business requires commercial auto insurance to protect the vehicle, driver, and others on the road in the event of an accident. Be sure to select a policy that covers not only accident-related vehicle repair costs and medical treatment for anyone injured, but also sufficient protection for any business materials you carry in your vehicle.

Workers’ Compensation Insurance

Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover, but also any disability or death benefits stemming from a work-related accident.

Commercial Property Insurance

You made a major investment in your business supplies, equipment, and real estate. In the event of a fire, theft, or natural disaster, commercial property insurance would cover the cost of repairing or replacing your business-related property. This includes structural damage to your building as well as your business equipment and supplies.

Commercial Umbrella Insurance

While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.

Additional Steps To Protect Your Business

Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.

Here are several things you can do to better protect your bus tour business:

  • Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
  • Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
  • Stay up to date with business licensing.
  • Maintain your corporate veil.

Bus Tour Business Insurance FAQ

Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.

A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.

"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.

For a bus tour business, obtaining business insurance is a prerequisite to long-term financial stability. While foregoing this protection may save you money in the short run, it will certainly cost you in the long run.

This is especially true if your business is mandated by law to carry certain policies, such as commercial auto or workers’ compensation insurance.

Not necessarily. Certain exceptions may be written directly into your bus tour business insurance policy, and some perils may be entirely uninsurable.

Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.

An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.