Rick J. Lindsey Discusses The Escalating Cost of Motorcoach Insurance with ABA’s AAMC
Insurance shouldn’t feel like a tax on doing business. It should be a partnership that helps you run better coaches, win better accounts, and survive the bad days. Rick J. Lindsey, CEO and President of XINSURANCE, joined the American Bus Association’s (ABA) African-American Motorcoach Council (AAMC) for a candid conversation about cost, claims, and control. Here are the key takeaways from his playbook: affordability is an outcome. You don’t buy it—you earn it with alignment, discipline, and a plan that’s built to be used.
Why this conversation matters
Motorcoach operators are getting squeezed from three directions: rising premiums, patchwork programs riddled with exclusions, and a litigation environment that rewards delay over facts. Lindsey’s message is plainspoken and practical: a cheap quote that abandons you at claim time is expensive. Affordability comes from structure and behavior—one plan, one team, and a claims strategy that knows when to pay and when to fight. In his words, “When you’re at fault, you pay quick and the lawyers can’t mess with you. When you’re not at fault and it’s frivolous, you have to fight.” That approach controls defense spend, protects reputation, and keeps customers confident.
From “uninsurable” to solvable
Lindsey’s philosophy was forged during the 1980s insurance crunch, when entire sectors—heli‑ski, whitewater, mountain guiding—were labeled “uninsurable.” Instead of accepting that, he focused on facts, operational discipline, and better documents (like enforceable release forms) to make risk insurable again. The lesson for motorcoach operators today: don’t let folklore run your business. Read your policy. Know your exclusions. Fix what’s fixable. And choose a partner who stands with you when something goes sideways. As Lindsey puts it: “Underwriting is picking good partners.”
Play offense with your claims
Traditional programs drift into endless defense: years of depositions, experts for everyone, then a late settlement after burning cash—“and then you pay anyway.” Lindsey advocates an offense built on facts. If a driver made a mistake, act fast: gather evidence, make a fair offer, and close the file before it grows. If the claim is opportunistic, send a clear signal early that trial is on the table. “You don’t let the lawyers fly the plane. We manage the claim together.”
How that looks in practice:
- Same-day intake with the operator looped in.
- A 30/60/90‑day plan: what will be proved, what will be paid (if anything), and how to get there.
- The right local counsel for the venue, not the cheapest panel pick.
- Early, fair offers when you’re wrong; targeted discovery and trial prep when you’re right.
This is how you reduce total cost—premium plus claims, defense, downtime—not just the sticker price.
One plan beats a patchwork
Fragmented towers—primary here, excess there, multiple handlers with misaligned incentives—create delay and cost. Lindsey has seen manageable matters spiral because an excess market, far from the facts, granted high settlement authority just to make a file disappear. His advice: consolidate. One comprehensive plan, one strategy, one decision path. “When you have multiple policies, everybody has different interests. That’s a red flag.” Simplicity isn’t cosmetic; it’s a core cost-control tool.
Report early—ditch deterrent deductibles for aligned risk‑share
Operators often sit on “small” incidents to protect loss runs. Then a sore neck turns into a seven‑figure demand. The structure caused the behavior: high deductibles punish reporting, so people don’t report. Lindsey prefers a risk‑share: the operator pays a small, negotiated slice of each claim—often 1% to 5%—and the carrier pays the rest. “Deductibles are bad. I prefer risk‑share—pay 1% or 5% and I’ll pay the rest. Now our interests are aligned.”
With that alignment, operators report on day one. The team secures dashcam footage, driver statements, passenger lists, EDR data, scene photos, and medical direction while evidence is fresh—often the difference between a nuisance and a nightmare.
Example: a $250,000 claim under a 3% risk‑share means $7,500 in participation—far less than a big deductible that discourages early reporting.
A court fight that mattered beyond one claim
Lindsey highlighted a helicopter transport dispute with implications for any operator who buses guests to venues or lodges. An upstream carrier tried to carve out an additional insured (the lodge) for a separate payment after settling the aircraft portion—an approach that, if allowed, could have opened the door to larger, more complex transportation claims. He took the matter to the Alaska Supreme Court and won. The takeaway: consistent strategy and a unified plan protect you far beyond the single file in front of you.
Captives without the captive headaches
Captives are often pitched with big promises—and big fees. Lindsey’s stance: if you truly need a captive, fine, but most operators can get 90% of the benefit without the overhead. His “virtual captive” approach lets you retain a negotiated slice of risk inside a custom policy so you participate in your good results while leveraging carrier capacity and claims muscle—without the governance and manager fees that erode savings.
What that can include:
- A defined participation (corridor or percentage) with clear stop‑loss.
- Transparent accounting and periodic statements, with the potential to grow a claims fund in strong years.
- The same unified claims strategy—no dilution because you’re participating.
Cut expense leakage to lower your total cost of risk
Premium is only part of what you spend. Every extra hand—MGA overrides, layered brokerage, outside TPAs, captive managers—drains the claims bucket before a single claimant sees a check. Lindsey warns against this “expense leakage.” XINSURANCE keeps the chain lean so more dollars resolve claims quickly, supporting steadier pricing for good operators and fewer renewal surprises. Bottom line: don’t judge by the cheapest quote; judge by the best outcomes when what can happen does happen.
What affordability looks like in practice
Put Lindsey’s playbook together and affordability looks like this:
- A single, comprehensive plan with the limits you actually need, so decisions are quick and incentives are aligned.
- Early reporting because your structure rewards it; evidence captured while it’s fresh; fair payment when you’re liable.
- Clear lines in the sand when a claim is frivolous—no slow bleed of defense fees.
- Visibility into your total cost of risk: defense spend, settlement behavior, downtime, and reputation impact—not just premium.
As Lindsey often reminds operators, most programs are riddled with exclusions. The goal is one plan that does the right thing at the right time.
What you can do this week
- Read your policy—or send it to us. We’ll flag exclusions, gaps, and gotchas in plain English.
- Pull three recent claims and ask: when did we report, what did we pay in fees versus indemnity, and where did delay cost us?
- Map your program: how many layers, how many adjusters, how many agendas? If the answer isn’t “one,” you’re paying for complexity.
How XINSURANCE partners with motorcoach operators
XINSURANCE exists for operators who want a true partner—especially when traditional providers won’t step up or try to slice your needs across multiple policies. We consolidate what you need into one comprehensive plan with broader protection and higher limits—up to $20 million, with higher limits available—so you’re not chasing gaps across fragmented programs. Our underwriting is conversation‑driven because we’re choosing partners, not just pricing files. And our claims philosophy is built to be used: resolve valid claims quickly and fairly; fight hard when the facts are on your side.
We’re agent‑friendly. We’ll work with your trusted advisor or directly with you. Start with a conversation and a free policy review. Read your policy, or send it to us and we’ll walk you through what’s really covered.
Get a Quote
Interested in getting a quote? We offer bus insurance solutions tailored to meet your needs! Just click the ‘get started’ button and fill out the form to start your quote request.
Watch the full conversation
American Bus Association’s African‑American Motorcoach Council with Rick J. Lindsey: