Board committee adds insurance-certificate deadlines and withholding clause to student transportation policy

The Rutherford County Board of Education policy committee on April 14 amended its student transportation policy to set firm deadlines for contractors’ insurance documentation and to allow the district to withhold payment until contractors comply.

The committee approved language requiring contractors who pay insurance annually to provide a certificate of insurance to the transportation department by Aug. 1 each year. Contractors that pay premiums on a nonannual basis must provide an initial certificate by Aug. 1 and updated certificates showing coverage for each consecutive month no later than the 10th of that month. The draft also requires contractors to submit a certificate within one business day if they change insurance companies or coverage.

Committee members said the changes respond to a prior lapse in coverage that exposed the district to substantial liability. "Our liability exposure was just unbelievable," one member warned, describing a previous lapse that, the member said, "could've bankrupted the school system in Rutherford County if something had happened." Another member noted many contractors finance premiums and urged sensitivity to small operators.

Jeff, a district staff member who helped draft the wording, proposed an enforcement sentence to be added to both paragraphs 5 and 6: "The Board of Education will withhold payment to any contractor until the contractor complies with requirements of this policy." That sentence was adopted as part of the amendment. Jeff read the clause aloud during discussion and the committee debated whether the clause should say "may" or "will." The committee settled on the stronger language to create a clear administrative tool for compliance.

Mister Vaughn, a board member, said the district cannot force contractors to pay insurers directly because they are independent contractors, but added the withholding clause will put contractors on notice. "I don't want to push them off," he said, but urged firm wording to protect taxpayers and students.

The motion to approve the amended paragraphs was made, seconded and approved by voice vote; members responded "Aye" and the chair declared the motion passed. Committee members also noted the policy will be presented for first reading at the next board meeting so contractors receive 30 days’ written notice before implementation.

The committee directed staff to incorporate the adopted wording into Policy 3.4 and return the item for the board’s formal consideration at the scheduled first reading.