Drivers that are looking to get started delivering for Amazon Prime have to meet their requirements.  In checking their website, Amazon requires that all delivery companies meet the following basic requirements:

Driver Training

As a company owner or owner-operator, you and your company are required to have a written safety program that includes your policies, procedures, and training for your drivers.

Vehicle Recommendations

While I have noticed that Amazon has small vehicles delivering for them, their site suggests vehicles with at least 200 cubic feet of volume.  With those types of measurements, you could be looking at something along the size of a cargo van or larger.  The size of the vehicle could lead to other considerations regarding state and federal regulations.

Insurance Requirements

As far as insurance requirements, Amazon’s requirements are very similar to a number of logistic companies.  Amazon’s basic insurance requirements include the following:

1. Commercial General Liability of $1,000,000 per occurrence / $2,000,000 aggregate
2. Workers Compensation – $1,000,000 limit
3. Business or Commercial Auto Liability – $1,000,000 combined single limit
4. Cargo Liability $25,000 (or higher, may need reefer coverage for Amazon Fresh)

Keep in mind that these are Amazon’s national delivery requirements.  Requirements could differ in the state of Texas.  It is possible that Amazon may allow workers compensation waivers for  individual owner operators.   As an insurance agent, I suggest carefully considering waiving workers compensation especially if you have plans to grow your business in Texas.   Waiving their requirements does no waive your liability under the law in case a driver is injured in the course of delivering packages.  Who’s responsible for gaps in coverages?

As a business owner, you are responsible for any driver injured on the site.  Amazon’s requirements only account for their liability exposure.  Since business owners are probably classified as a independent contractors, you should probably consider the following coverages:

• Physical Damage Liability
• Health and Supplemental Insurance
• Life Insurance
• Retirement

Physical damage liability can be added to most commercial auto policies for vehicles under 54,000 lb gvw.  For health, life, and retirement benefits, consider discussing these benefits unless you think you can work as a delivery driver forever.  We are fortunate enough to have plans that address the coverage needs of today’s delivery and transportation companies.  These plans start around $75 to $100 per week.

Aside from insurance coverage considerations, I previously mentioned the possibility of state and federal regulatory needs.  If your vehicle ultimately is required to get a USDOT number and MC number or TXDMV number  (formerly TXDOT number), then you may fall under federal motor carrier regulation.  I contacted Amazon and will update this blog post if they change their insurance or other regulatory requirements.