Rental of School Buses

**Please refer to the attached State Risk Management March 2013 Newsletter for download. See page 5.

Unfortunately, State Risk Management insurance does not cover school buses rented or provided by school districts to private entities. The school district and local taxpayers will be responsible if a loss occurs and that could add up to millions of dollars. Risk Management insurance may cover buses rented or provided to another governmental entity (county, city. charter school).

State Risk Fund insurance covers government entities and their property and employees, but does not cover private entities and their property. The school district is a governmental entity which is protected from liability by the Governmental Immunity Act which limits the damages that can be obtained against governmental

entities but is not protected from liability associated with private entities.