Rutherford County School Board votes to terminate contracts after contractor’s insurance lapsed

The Rutherford County School Board voted Feb. 24 to terminate contracts tied to Ursa Major Logistics after district staff said the company’s liability policy was canceled effective Feb. 19, leaving 39 buses listed on that policy uninsured that day.

In public comment, transportation contractor Christie(Christy) Crosland asked bluntly whether “children were transported on these buses without insurance,” and called for clear, factual answers and limits on how many routes a single contractor may hold. Gary Carter, the contractor whose policy lapsed, told the board, “I take full responsibility for the laps in the insurance for the buses that I operate,” and apologized to families and drivers.

Why it matters: The board concluded the lapse put students and taxpayers at legal and financial risk. Superintendent Dr. Sullivan and transportation staff described a multi-day operational effort to reassign routes after the district received a notice from the insurer and used VIN numbers to identify affected buses. Staff said some leased buses may have been covered as additional insureds under the policy, but the district could confirm only that the 39 VINs listed had no effective coverage on Feb. 19, 2026.

District account of the incident: Dr. Sullivan told the board the district was alerted Friday that “Ursa Major Logistics, their insurance being terminated.” Staff said they identified 39 buses on a bus…