Tort Liability and Reform - As enacted, prohibits governmental entities or local boards of education from extending immunity granted to independent school bus contractors rather than independent school bus owners and operators for providing school-related transportation services; requires liability insurance coverage in a contract or agreement between a local board of education and an independent school bus contractor for such services to be in an amount sufficient to satisfy applicable law; permits evidence of such coverage to include a certificate of insurance from an insurance provider that lists the local board of education as an additional insured. - Amends TCA Title 29, Chapter 20.

114th Regular Session (2025-2026) Introduced by Paul Bailey

SB 408 eliminates sovereign immunity for school bus contractors and mandates liability insurance naming school boards as additional insureds to improve accountability for transportation-related injuries.

Pub. Ch. 299

#tortliabilityandreform

Legislative bill overview

SB 408 removes sovereign immunity protections that government entities and school boards previously extended to independent school bus contractors, requiring them instead to carry adequate liability insurance. The bill mandates that contracts between school boards and bus contractors include sufficient insurance coverage and allows school boards to be named as additional insureds on these policies.

Why is this important

This change shifts financial risk from public entities to private contractors, potentially reducing taxpayer liability for accidents or injuries involving school transportation. It ensures that injured parties have a clear path to recover damages from the contractor's insurance rather than being blocked by government immunity claims, which could improve accountability in school transportation safety.

Potential points of contention

Contractor costs and availability: Requiring higher insurance coverage may increase premiums for independent contractors, potentially reducing the number willing to provide school bus services or increasing costs passed to school districts

School district liability exposure: While contractors carry insurance, gaps in coverage or contractual disputes could still leave school boards defending themselves in litigation, possibly increasing administrative costs

Implementation burden: School boards must verify adequate coverage amounts and manage additional insured status across multiple policies, creating administrative complexity