Insurance Company Not Required to Defend and Indemnify School Bus Transportation Company or School District in Case of Student-on-Student Physical/Sexual Assault Aboard School Bus.

Marshall Dennehey
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National Liability & Fire Insurance Co. v. Brimar Transit, Inc., 2023 WL 6172886 (3d Cir., Sep. 22, 2023)

In a case that could have a significant impact on school transportation companies and school districts that provide their own transportation services, the federal appeals court has held that physical and sexual assault allegations, predicated upon incidents between students that occur aboard the bus, are not events that are sufficiently related to the use of a bus as a “motor vehicle” to require defense and indemnification by an insurance company. This interpretation of Pennsylvania insurance law could leave transportation companies without coverage, depending upon the exclusionary language of their policies, as well as whether those companies are carrying general liability coverage in addition to merely auto coverage.

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Marshall Dennehey
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