MURFREESBORO, Tenn. (WTVF) — Thousands of students across Rutherford County were left without bus service after the school district discovered nearly 40 buses were operating without insurance — and leaders have reinstated only six contracts so far.
The Rutherford County school board unanimously terminated all contracts tied to the insurance lapse, leaving thousands of students stranded and several drivers out of work.
The situation began on Friday when the district learned that buses operated by Ursa Major Logistics were uninsured. By the time officials discovered the policy had been canceled, the buses had already completed their afternoon routes.
Kristy Crosslin, a transportation contractor and parent, said she had immediate concerns about student safety.
"My first and most urgent question is, were children transported on this bus or on these buses without insurance?" Crosslin said.
Rutherford County does not own its school buses — it contracts with private operators. When Ursa Major Logistics lost coverage, routes serving thousands of students across 17 schools were impacted.
District contracts require insurance carriers to provide 30 days' advance written notice to the board before canceling a policy. That notice did not come in time to prevent the disruption.
Gary Carter, who owns and operates Ursa Major Logistics, appeared before the board on Tuesday. Board member Butch Vaughn questioned him directly.
"Mr. Carter, when's the last time you paid your insurance?" Vaughn said.
"It was paid up through January," Carter said.
Vaughn did not hold back in his assessment of the situation.
"You know, you knowingly put these people at risk, and you put Rutherford County Schools at risk, and the taxpayers in Rutherford County, you put them all at risk," Vaughn said.
"I understand that. And for that, I'm truly sorry," Carter said.
Carter told the board he believed he had until February 27 to catch up on payments, but the policy was canceled before that date.
"That was what my understanding was, but that's not what was true because that's what was listed online in my policy," Carter said.
The board voted to terminate every Ursa Major contract, as well as contracts tied to the insurance lapse. Initially, only 2 contracts were reinstated — after those operators showed proof of their own buses and valid insurance.
Board members returned on Wednesday for a second special meeting to address the ongoing disruption.
"That's why we came back — to put four more buses back on the road. They had insurance the whole time; they just drove for him," a board member said.
Board member Tammy Sharp, whose district includes parts of Smyrna and La Vergne — areas among the most heavily affected — expressed concern about the broader impact on drivers.
"I wish we could've done something else. It put about 20 drivers out of work — a lot of drivers out of work," Sharp said.
Under a state law, contractors are required to pay for their own insurance. Rutherford County provides each contractor $4,000 per contract to help cover that cost. Carter owns and operates close to 20 buses and leases more than 20 others to contractors who cannot afford their own. He charges those contractors only the $4,000 county stipend — not the full cost of insurance, which Carter says is closer to $5,000 per bus.
The district superintendent has noted that issuing those checks quickly presents a logistical challenge, requiring a special motion as recently as last year.
The district says it is now reviewing its insurance verification procedures. But for families like Crosslin's, the impact is already felt.
"When a parent puts a child on a school bus, they put their trust in this board and this system. That trust has been shaken," Crosslin said.
The district has said that if a bus route cannot be covered, all resulting absences or tardies will be excused. Even families on unaffected routes were warned to expect possible delays.
The board is expected to continue reinstating contracts as drivers show proof of valid insurance.
The following bus routes were affected by the insurance lapse:
12, 16, 27, 39, 61, 65, 75, 84, 96, 97, 100, 114, 115, 129, 130, 140, 160, 168, 176, 187, 189, 195, 199, 204, 211, 212, 215, 220, 227, 237, 244, 258, 290, 303, 309, 313, 315, 320, 323, 326, 327
This story was reported on-air by journalist Kelsey Gibbs and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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