Commercial Insurance For Amazon Delivery Drivers

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Commercial Insurance For Amazon Delivery Drivers Policy Information

Commercial Insurance For Amazon Delivery Drivers

Commercial Insurance For Amazon Delivery Drivers. Amazon, the world's largest online retailer, offers numerous employment opportunities; perhaps one of the biggest being delivery drivers. With so many people ordering from Amazon, delivery drivers are in high demand.

If you're thinking about becoming a delivery driver for Amazon using your own car, you need to meet certain commercial insurance for Amazon delivery drivers requirements.

Why do you need this type of insurance and what does it entail? Read on to learn more about business insurance for Amazon delivery drivers, so that you can make sure you are properly covered and meet all necessary requirements before you start your new gig.

Commercial insurance for Amazon delivery drivers helps you meet Amazon's insurance requirements starting as low as $127/mo. Get a fast quote and your certificate of insurance now..

Below are some answers to commonly asked commercial insurance for Amazon delivery drivers questions:


How Much Does Commercial Insurance For Amazon Delivery Drivers Cost?

The average price of a standard business auto insurance policy for Amazon delivery drivers ranges from $127 to $259 per month based on location, driving history, type of vehicle, coverages selected and more.

Why Do Amazon Deliver Drivers Need Insurance?

Amazon Package Delivery

Also known as Amazon Flex Insurance, the reason you need this policy is because it is a contractual requirement of Amazon if you want to deliver packages for them.

In addition to this commercial insurance for Amazon delivery drivers, you'll also need to maintain your own auto insurance coverage in order to ensure that you are always covered. In other words, when you aren't making deliveries for Amazon and are driving for your own purposes, your personal auto insurance will be in effect; your personal auto insurance won't cover you while you're working.

However, when you're on the clock as an Amazon driver - delivering packages, picking them up, or returning them to the retailer - your Amazon Flex auto insurance policy will activated.

What is Amazon Flex Insurance And What Does It Cover?

Amazon Flex insurance is a customized commercial auto insurance policy that is designed to provide Amazon Flex drivers with the coverage they need while they're working for the retailer. This commercial insurance for Amazon delivery drivers policy provides comprehensive coverage, including:

  • Auto Liability Coverage - Offering up to $1 million per accident for any accidents that you are considered at-fault for. This aspect of the policy will cover any repairs that someone else's property may sustain as a result of the accident.
  • Uninsured/Underinsured Motorist Coverage - An Amazon Flex policy also offers up to $1 million per accident that may occur if you're involved in an accident with an uninsured or underinsured motorist, and the other motorist was at-fault. It covers any damages that may be made to your car, as well as any injuries that you or the occupants in your car may sustain.
  • Contingent Comprehensive And Collision Coverage - This commercial auto insurance policy also offers up to $50,000in coverage per accident for any accidents that may result in physical damages to your car. For example, if you are involved in an accident that was your fault and your vehicle sustained damages, this part of an Amazon Flex policy will cover the necessary repairs. However, do note that you will also need to have comprehensive and collision coverage on your own policy in order for Amazon Flex insurance to cover any damages that may occur while you're on the clock. Additionally, there's a $1,000 deductible for damages that occur as a result of at-fault accidents.

What Doesn't The Amazon Flex Insurance Policy Cover?

While an Amazon Flex commercial auto insurance policy may provide substantial coverage, it won't cover everything that you may need. For example, this commercial insurance for Amazon delivery drivers doesn't cover the following:

  • Towing and rental vehicles: If you are involved in an accident and your vehicle requires repairs, an Amazon Flex insurance policy won't cover the cost of a tow truck or the rental car that you may need while you're car is being repaired. If you want to ensure that you have roadside assistance and rental coverage, check with your personal auto insurance provider to see if your existing policy provides this coverage or if you need to invest in additional insurance.
  • Medical payments: When you work as an Amazon Flex delivery driver, you're considered an independent contractor. As such, you're responsible for any medical care that you may require if you are involved in an accident. To ensure that you have the proper coverage for medical care, you'll need to purchase your own policy.
  • Mechanical failures: If your vehicle experienced mechanical failures and diet on the side of the road while you're making deliveries, an Amazon Flex policy won't cover you. Purchase an additional policy that provides this coverage and make sure that your vehicle is properly maintained.

Does Amazon Flex Insurance Void Personal Auto Insurance?

When you purchase Amazon Flex insurance, you're combining the policy with your personal auto insurance policy. Therefore, it's essential that you make sure if your personal auto insurance is compatible with this commercial auto insurance policy.

Not all personal policies are compatible with Amazon Flex insurance. If yours isn't, you might void your personal coverage when you purchase an Amazon Flex policy.

Accounting Risks & Exposures

Amazon Flex Insurance

Commercial auto exposures are significant. The radius of operation, guaranteed delivery timeframes, and traffic congestion add to loss potential.

All drivers must have valid licenses appropriate for the types of vehicles being driven with regular checks of their MVRs. Drivers should be familiar with routes and participate in regular training activities to maintain skills needed for driving in congested areas, at night, and during inclement weather.

All vehicles must be regularly maintained with records kept in a central location.

Premises liability exposures are low due to limited public access to the courier's premises. Off-premises exposures are significant as the courier may have open access to client locations during non business hours. Liability may be created if the courier does not lock the doors or reset alarms.

Workers compensation exposures are high due to loading and unloading packages. Although package weights are limited, handling bulky items can easily lead to hernias, back injuries, and slips and falls. Drivers may be injured during hold ups or in automobile accidents.

Property exposures are minimal, as independent couriers usually operate from their homes. Ignition sources include electrical wiring, heating, and air conditioning systems.

Crime exposures are primarily from employee dishonesty. Background checks (including criminal history) should be performed on all employees who have access to clients' premises after regular business hours. Couriers often become trusted auxiliary members of a client's staff and have access to its premises, increasing the potential for theft of customer property and customer identity theft.

Inland marine exposures include accounts receivable for monies due from the contract with the courier service, motor truck cargo for goods being delivered to clients, and valuable papers and records for contracts. Major causes of loss include fire, water damage, theft, collision and overturn. There may be computers used to track packages.

Commercial Insurance And Business Industry Classification

  • SIC CODE: 4215 Courier Services, Except by Air
  • NAICS CODE: 492110 Couriers and Express Delivery Services
  • Suggested ISO General Liability Code(s): 94099
  • Suggested Workers Compensation Code(s): 7231

Description for 4215: Courier Services, Except by Air

Division E: Transportation, Communications, Electric, Gas, And Sanitary Services | Major Group 42: Motor Freight Transportation And Warehousing | Industry Group 421: Trucking And Courier Services, Except Air

4215 Courier Services, Except by Air: Establishments primarily engaged in the delivery of individually addressed letters, parcels, and packages (generally under 100 pounds), except by means of air transportation or by the United States Postal Service. Delivery is usually made by street or highway within a local area or between cities.

  • Courier services, except by air
  • Letter delivery, private: except air
  • Mail delivery, private: except air
  • Package delivery, private: except air
  • Parcel delivery, private: except air

Commercial Insurance For Amazon Delivery Drivers - The Bottom Line

If you're planning on becoming a delivery driver for Amazon, you need to make sure that you have the necessary insurance coverage. Speak to a reputable insurance broker to learn more about Amazon Flex and how it will work with your personal car insurance policy.

Types Of Small Business Insurance - Requirements & Regulations

Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.

Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.

Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.

Small Business Information

Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.

Small Business Insurance Information

In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.

The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.

Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.

According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.

Types Of Small Business Insurance

Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:

  • What type of business am I running?
  • What are common risks associated with this industry?
  • Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
  • Does my state require me to carry this type of insurance?
  • Does my lender or do any of my investors require me to carry this type of policy?

A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:

Business Insurance Policy Type What Is Covered?
General Liability InsuranceWhat is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.
Workers Compensation InsuranceWhat is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.
Product Liability InsuranceWhat is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.
Commercial Property InsuranceWhat is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.
Business Owners Policy (BOP)What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.
Commercial Auto InsuranceWhat is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.
Commercial Umbrella PoliciesWhat is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.
Liquor Liability InsuranceWhat is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.
Professional Liability (Errors & Omissions)What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.
Surety BondWhat is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).


Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.

Business Insurance Required by Law
Small Business Commercial Insurance

If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.

Your insurance agent can help you check applicable state laws so you can bring your business into compliance.

Other Types Of Small Business Insurance

There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:

  • Business Interruption Insurance
  • Commercial Flood Insurance
  • Contractor's Insurance
  • Cyber Liability
  • Data Breach
  • Directors and Officers
  • Employment Practices Liability
  • Environmental or Pollution Liability
  • Management Liability
  • Sexual Misconduct Liability

Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.

Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.

Additional Resources For Commercial Auto Insurance

Learn about small business commercial auto insurance which includes liability and physical damage protection for vehicles that are used for business purposes.


Commercial Vehicle Insurance

The person injured in an vehicle accident may be a child, a wage earning single parent, a brain surgeon, or even a homeless person. The costs of the accident may be relatively small or run into the millions of dollars, depending on the victim and his or her injuries. Do you have the assets to handle such costs?

Trucking operations in this chapter are among the most heavily regulated in the country. All are subject to multiple types of regulation including municipal, state and federal. The regulations are necessary because potential for severe property damage and/or bodily injury is extremely high.

All carry cargo that if not handled appropriately could have serious consequences to the cargo owner and/or the public at large. Those that carry people must prove that they keep their equipment in good condition and that employees operate in a safe, sober manner.

The insurance company pays amounts an insured is legally obligated to pay as damages because of bodily injury or property damage and certain types of pollution events covered by this insurance caused by an accident and resulting from ownership, maintenance or use of covered vehicles.

The obligation to pay is triggered only by accidental occurrences involving vehicles covered under the Business Auto Coverage Form. An eligible pollution event is covered only if it is connected to a covered bodily injury or property damage loss.

It is important that you have the proper Limit of Insurance to protect your operations. This limit is the most the insurance company pays for the total of all damages, including any covered pollution cost or expense resulting from any one covered accident, is the Covered Auto liability limit of insurance on the declarations.

This limit applies regardless of the number of insureds, autos covered, vehicles involved in an accident, premium paid, or number of claims made.

Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Accounts Receivables, Computers, Motor Truck Cargo, Valuable Papers and Records, Employee Dishonesty, Money and Securities, General Liability, Employee Benefits, Umbrella, Motor Carriers Liability and Physical Damage, Hired and Non-owned Auto & Workers Compensation.

Other commercial insurance policies to consider: Earthquake, Flood, Mobile Equipment, Signs, Warehouse Operators' Legal Liability, Cyber Liability, Employment-related Practices, Environmental Impairment, Underground Storage Tank, Stop Gap Liability and International Coverages.


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