(1) No motor vehicle may be used as a school bus unless a policy of bodily injury and property damage liability insurance, issued by an insurer authorized to transact business in this state, is maintained thereon. The policy shall provide property damage liability coverage with a limit of not less than $10,000. The policy also shall provide bodily injury liability coverage with limits of not less than $75,000 for each person and, subject to such limit for each person, total limits as follows: (a) $150,000 for each accident for each such motor vehicle having a seating capacity of 7 passengers or less. (b) $200,000 for each accident for each such motor vehicle having a seating capacity of 8 to 15 passengers. (c) $250,000 for each accident for each such motor vehicle having a seating capacity of 16 to 24 passengers. (d) $375,000 for each accident for each such motor vehicle having a seating capacity of 25 to 36 passengers. (e) $1,000,000 for each accident for each such motor vehicle having a seating capacity of 37 or more passengers. (2) The policy under this section shall cover the transportation of pupils, their parents or guardians, authorized chaperones, school district officers, faculty and employees and school doctors, dentists and nurses: (a) To and from the school or school district which operates the school bus or contracts for its operation. (b) In connection with any extracurricular school activity authorized by and made in compliance with s. 121.54 (7). (3) An insurer issuing a policy under this section may exclude coverage for public or livery use of the school bus, but any such exclusion does not apply: (a) When the school bus, while regularly used as such, also is used to transport pupils of another public or private school, whether or not a charge is made for such transportation. (b) When used in accordance with sub. (2), whether or not any person lawfully transported is required to pay a charge therefor. (c) When the school bus is used as specified in s. 340.01 (56) (am) for the purpose of transporting seniors or individuals with disabilities in connection with a transportation assistance program for such persons. (4) Every school board shall require that there be filed with it and with the department of transportation a certificate of insurance showing that an insurance policy has been procured and is in effect which covers the owner and operator of the school bus and the school board or shall procure an insurance policy and file such certificate with the department of transportation. Unless such certificate is on file with the department of transportation, no registration plates for a school bus may be issued by the department of transportation. No such policy may be terminated prior to its expiration or canceled for any reason, unless a notice thereof is filed with the department of transportation and with the school board by the insurer at least 10 days prior to the date of termination or cancellation. The department of transportation shall revoke the registration of a school bus on which the policy has been terminated or canceled, effective on the date of termination or cancellation. (5) Subsections (1) to (4) do not apply to: (a) A motor vehicle owned or operated by a parent or guardian transporting only the parent’s or guardian’s own children, whether or not any contract is made with or compensation paid to the parent or guardian for such transportation by a school board. (b) A motor vehicle operated by a common carrier certificated under ch. 194, where such motor vehicle is used under contract pursuant to this subchapter, if the common carrier has complied with s. 194.41 or 194.42. (c) A taxicab regulated by a municipal ordinance under s. 349.24 when used to transport pupils. (6) Within 10 days after its occurrence, every accident involving a motor vehicle while providing transportation under this subchapter shall be reported to the appropriate school board.
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