Last mile delivery insurance: coverage for Amazon, FedEx, and independent delivery contractors.
Insurance for last mile delivery businesses.
The explosion of e-commerce has created an enormous market for last mile delivery contractors — the businesses and independent drivers who get packages from distribution centers to doorsteps. Whether you operate a Delivery Service Partner (DSP) fleet for Amazon, a delivery business for FedEx Ground or FedEx Home Delivery, or an independent last mile operation serving multiple clients, you face insurance challenges that most standard commercial auto policies are simply not designed to address.
GLS Insurance works with last mile delivery businesses and DSP operators across all 17 states in our service territory — including the densely populated delivery markets of Illinois, Texas, Florida, Tennessee, North Carolina, and Georgia, and the growing suburban and rural delivery corridors across Missouri, Kansas, Indiana, Nebraska, and the Carolinas.
The unique insurance challenges of last mile delivery.
Last mile delivery is one of the most claims-intensive commercial auto classes in the country. Drivers are on the road for extended hours, often in unfamiliar areas, making dozens of stops per shift, frequently reversing in tight spaces and residential driveways. Cargo claims, vehicle accidents, property damage during delivery, and slip-and-fall claims at residential and commercial delivery points all generate regular losses in this industry.
Amazon and FedEx Delivery Service Partners face an additional challenge: the platform company’s insurance requirements. Both Amazon and FedEx Ground require DSPs to carry specific insurance programs with defined minimums, and failure to maintain compliant coverage can result in contract termination. GLS Insurance understands these program requirements and builds policies that satisfy platform requirements while providing genuine protection for your business.
Key insurance coverages for last mile delivery contractors.
- Commercial Auto Insurance — The foundational coverage for any delivery operation. Covers liability, collision, and comprehensive on your delivery vehicles — vans, cargo vehicles, and trucks. Last mile delivery is a high-risk auto classification, and not all carriers will write this business. GLS works with markets that specialize in commercial delivery fleets.
- Hired and Non-Owned Auto Insurance — Critical for DSPs that use independent contractors or gig drivers using their own vehicles. When a contractor’s personal auto policy excludes delivery driving, the DSP can be exposed without hired and non-owned auto coverage.
- Cargo / Motor Truck Cargo Insurance — Covers the value of packages and freight in your vehicles during transit. Amazon and FedEx package values vary widely, and cargo claims are frequent in last mile delivery.
- General Liability Insurance — Covers bodily injury and property damage claims that arise outside of the vehicle — a package-related trip hazard on a customer’s doorstep, damage to property during delivery, or an injury occurring during the delivery process.
- Workers’ Compensation — If you employ drivers rather than using independent contractors, workers’ comp is required by law in virtually every state in our territory. Delivery driver workers’ comp claims can be significant given the physical demands and road exposure of the work.
- Umbrella / Excess Liability — Given the frequency and potential severity of delivery-related auto claims, umbrella coverage is strongly recommended for delivery businesses with larger fleets.
- Occupational Accident Insurance — For DSPs using independent contractors who are not employees, occupational accident coverage provides injury protection similar to workers’ comp for 1099 drivers.
Amazon DSP insurance requirements.
Amazon Delivery Service Partners are required to maintain insurance that meets Amazon Logistics’ standards, which typically include commercial auto liability, cargo coverage, and general liability at specified minimum limits. Amazon periodically updates its insurance requirements, and DSPs that allow their coverage to lapse or fall below minimums risk being placed in probationary status or losing their contracts.
GLS Insurance monitors the insurance requirements for Amazon DSPs and FedEx Ground contractors and works with carriers that are experienced in writing compliant programs for delivery service businesses. We also provide certificates of insurance and evidence of coverage documentation in the formats required by the platform companies.
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