Delivery services are defined by constant driving, time pressure, and responsibility for other people's goods. Every mile on the road is an exposure, every package is a liability, and every delivery stop creates premises risk.
Commercial Auto Insurance
Commercial auto is the foundation of delivery insurance:
- Liability: Bodily injury and property damage from delivery vehicle accidents
- Physical damage: Collision and comprehensive for your delivery vehicles
- Multiple stops: Delivery vehicles make many stops per day — each stop is an accident exposure
- Hired and non-owned auto: Critical when drivers use personal vehicles
Motor Truck Cargo / Inland Transit
Covers goods you're transporting:
- Package damage: Breakage, water damage, crushing during transit
- Theft: Packages stolen from vehicles
- Loss: Packages lost or delivered to wrong addresses
- Temperature-sensitive: Food, medical, and pharmaceutical deliveries that spoil
Coverage limits depend on the value of goods you typically carry. Medical and pharmaceutical couriers need higher limits than standard package delivery.
General Liability
- Customer premises injury: Delivery driver slips and falls at a customer location
- Property damage: Delivery driver damages customer property during drop-off
- Advertising injury: Claims from your marketing
Workers Compensation
- Vehicle accidents: The primary workers comp risk for delivery drivers
- Lifting injuries: Loading and unloading packages
- Slip-and-fall: Stairs, driveways, and walkways at delivery locations
- Dog bites: Delivery drivers are frequently bitten by dogs at residential deliveries
- Weather exposure: Working outdoors in all conditions
Platform & Contract Requirements
- Amazon DSP: Requires commercial auto with specific limits
- FedEx Ground: Contractor requirements include commercial auto and cargo
- Medical/pharmaceutical: Higher insurance requirements for regulated deliveries
- Corporate clients: Often require $1M+ auto liability and cargo coverage
How to Reduce Delivery Insurance Costs
- Driver records: Clean MVRs are the #1 factor in commercial auto pricing
- Telematics: GPS tracking and driver monitoring can earn 5–15% discounts
- Vehicle maintenance: Regular maintenance reduces accidents and breakdowns
- Route optimization: Fewer miles = fewer accidents = lower premiums
- Independent agent: Delivery insurance varies significantly by carrier — an agent finds the best program for your operation