As one of the country’s largest employers, Amazon offers delivery opportunities for trucking companies to deliver Amazon trailers through its Amazon Relay program or independent contractors to deliver products using your personal vehicle through its Amazon Flex program.
Since Amazon’s delivery service opportunities are still relatively new, people are trying to understand what insurance coverage they need in the event of a crash.
Let’s look at both programs and their commercial insurance requirements.
What is Amazon Relay and what kind of insurance do I need?
Amazon Relay enables carriers to tap into Amazon’s network, technology, and safety-first culture to build and grow your transportation businesses.
Amazon offers fleets or owner-operators short-term contracts, load board of Amazon’s freight network, a check-in and scheduling driver app, and options to post when your truck is empty and available for your next load.
To join Amazon’s freight network, you must meet the following minimum requirement:
- Have an active DOT number with interstate authority and a valid MC number
- Have a “Carrier” entity type that is Authorized for Property and For-Hire
- Have a Federal Motor Carrier Safety Administration (FMCSA) Safety Rating of “Satisfactory,” “None,” or “Not Rated”
Generally, Amazon works with the following equipment types:
- Tractor: Day cab, Box Truck, and Sleeper Cab
- Trailers: 28’ Trailer, 53’ Dry Van, and Reefer
Carriers must also have all the required insurance policies including:
- Commercial General Liability not less than $1,000,000 per occurrence and $2,000,000 in the aggregate
- Auto Liability not less than $1,000,000 per occurrence, including a trailer replacement coverage of $50,000
- Cargo coverage of least $100,000
- Workers’ Compensation insurance in all jurisdictions where your company operates
- Employer Liability not less than $100,000 per occurrence
Amazon requires that carriers ensure the highest level of safety and performance, including compliance with safety, DOT and insurance requirements.
We have built an Amazon Relay coverage policy where we can receive quick quotes online to help you find the best rates for your business. Before we can get you an estimate, we are going to need some information.
What is Amazon Flex and what kind of insurance do I need?
With the successful rise of Uber and Lyft’s rideshare services, Amazon is offering flexible independent work for anyone with a vehicle, preferably a 4-door midsize sedan or larger vehicle (like an SUV, van or truck with a covered bed) with decent gas mileage to maximize profits.
The Amazon Flex program allows people to become independent contractors to sign up and deliver packages for Amazon in their personal vehicle. You must be:
- 21 years of age or older
- Have a valid driver’s license
- Maintain personal auto insurance
- Have an iPhone or Android Smartphone
- Drive a 4-door sedan or SUV
Amazon Flex insurance coverage is a contractual requirement of Amazon if you want to deliver packages on their behalf in your area.
In addition to your personal auto coverage, Amazon provides delivery partners in all states (other than NY) with the Amazon Commercial Auto Insurance Policy at no cost.
This policy includes:
- Auto liability coverage
- Uninsured motorist/under-insured motorist coverage
- Contingent comprehensive and collision coverage
The auto insurance coverage included with Amazon Flex covers up to $1 million in damages to third-party vehicles and up to $50,000 in damage to your vehicle.
If it is found that you were at fault in the accident that takes place during your shift, you must pay a $1,000 deductible.
This auto insurance policy applies only to Amazon Flex delivery partners (passengers are not covered), who maintain personal auto insurance on the vehicle they are driving and who are actively delivering during the delivery block. In addition, if anyone other than the Amazon Flex delivery partner is driving when an accident occurs, the claim for any incurred losses will be denied.
Average business rates if you use your own car to deliver for Amazon are $304.83/month. These average rates differ depending on your local city and state.
Although insurance companies typically recommend a commercial policy for individuals who will be acting as a courier, certain kinds of personal policies geared toward rideshare drivers may be ideal for on-demand delivery drivers as well.
Some insurance companies are providing rideshare-oriented policies that cover drivers who are working for on-demand app-based services.
While commercial insurance is normally more expensive, it provides more extensive coverage and is appropriate in more situations.
Before you buy personal or commercial auto insurance, let your agent know that you use your car or truck for commercial deliveries. Your agent can work with you to make sure you have the proper auto insurance coverage and that it will not be voided by the additional insurance offered by Amazon.
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