KRS 160.310: Board to provide insurance for school buses.

Each board of education may set aside funds to provide for liability and indemnity

insurance against the negligence of the drivers or operators of school buses, other motor

vehicles, and mobile equipment owned or operated by the board. If the transportatio n of

pupils is let out under contract, the contract shall require the contractor to carry indemnity

or liability insurance against negligence in such amount as the board designates. In either

case, the indemnity bond or insurance policy shall be issued by some surety or insurance

company authorized to transact business in this state, and shall bind the company to pay

any final judgment, not to exceed the limits of the policy, rendered against the insured for

loss or damage to property of any school child or death or injury of any school child or

other person.