Per 702 KAR 5:030, the Kentucky Department of Education requires liability or indemnity insurance for buses and sets the coverage limits. If there are pupils transported on school buses or other vehicles contracted to the board, the board must enter into an agreement with the contractor to secure fleet rates for liability or indemnity insurance for all of these vehicles.

The main requirements for schools include:

Districts must insure their bus fleet and contract carriers, at a minimum, with the coverage prescribed by the Department of Education.

Districts must ensure that all contract carriers that transport children are properly insured.