A Project by the American Bus Association
Charter Bus Contract Review Guide
A signed contract protects both you and the carrier. Use this guide to review every charter bus agreement before you sign, whether you are booking directly, through a transportation management company, or through a broker.
Carrier Identity and Authority
- The full legal name and USDOT number of the company that will actually operate the bus.
- Confirmation that the carrier is operating under its own federal authority, not another company's authority.
- The carrier's MC number if interstate travel is involved.
- If booking through a broker or TMC, the contract should name both the broker and the operating carrier, and clarify who is legally responsible for each part of the trip.
Trip Details
- Exact pickup and dropoff dates, times, and addresses for every stop.
- Itinerary with scheduled rest stops, meal stops, and overnight layovers.
- Vehicle type, capacity, and any specific amenities promised (restroom, WiFi, luggage, accessibility).
- Driver lodging arrangements and whether those costs are included in the price.
Pricing and Payment Terms
- Total price with a full breakdown of all charges: mileage, hourly rate, fuel, driver gratuity, tolls, parking, and administrative fees.
- Deposit amount, due date, and whether the deposit is refundable.
- Final payment due date and accepted payment methods.
- Cancellation policy with timelines for full refund, partial refund, and forfeiture.
- Wait time charges and how overtime is calculated if the trip runs long.
Insurance Requirements
- Minimum auto liability coverage of at least $5 million for vehicles seating 15 or more passengers (federal requirement).
- A certificate of insurance naming your organization as certificate holder, sent directly from the carrier's insurance provider, not hand-delivered by the driver.
- Confirmation that workers' compensation coverage is in place for drivers.
- If booking through a broker or TMC, verify whether the carrier's policy or the broker's policy covers your trip.
Driver and Vehicle Standards
- Requirement that drivers hold a valid commercial driver's license (CDL) with passenger endorsement.
- Confirmation that drivers comply with federal hours of service regulations to prevent fatigue.
- Statement that the vehicle has been inspected before the trip and is road-ready.
- Procedure for replacing the vehicle or driver if a mechanical or staffing issue arises.
Contract Red Flags
- The contract does not name the actual operating carrier or lists only the broker.
- The carrier or broker refuses to provide a certificate of insurance before payment.
- Cancellation terms are vague or heavily favor the carrier with no reciprocal protection.
- Pricing is a single lump sum with no itemized breakdown.
- There is no contingency clause for vehicle or driver substitution.
- You are pressured to sign or pay before reviewing the full contract.
Review Every Contract Before You Book
Pair this guide with the Buyer Safety Checklist for a complete pre-booking review.
Sources & Citations
FMCSA Insurance Requirements, U.S. Department of Transportation
FMCSA Hours of Service Regulations, 49 CFR Part 395
A Project by the American Bus Association
