Amazon DSP Insurance: What the Program Actually Requires
By Tamir Lerner · Last Mile Delivery Insurance · Updated July 2026
Quick answer: An Amazon DSP (Delivery Service Partner) is an independent business, so it must carry its own insurance. The program typically requires commercial auto liability at a high limit — commonly $1M combined single limit (CSL), confirm your program's current requirements — plus workers' compensation, general liability, and auto physical damage, with Amazon named as an additional insured. Cargo coverage is commonly recommended.
What is an Amazon DSP?
Amazon's Delivery Service Partner program lets entrepreneurs build a business delivering Amazon packages using branded vans, usually leased or financed through the program. As a delivery service partner you employ your own drivers, manage your own routes out of an Amazon delivery station, and — critically — you carry your own insurance. Amazon provides the volume and the technology; you run the company.
That independence is the whole point of the model, and it is why insurance sits squarely on your shoulders. Amazon sets minimum coverage standards in your agreement, but you are the named insured on every policy, you pay the premiums, and your business absorbs any loss that exceeds your limits.
What insurance does the Amazon DSP program require?
The program specifies a coverage package designed to protect both your business and Amazon. Exact limits and endorsement wording are set in your agreement and can change, so always verify against your current program documents before you bind or renew. In general terms, a DSP is expected to carry:
| Coverage | What it protects | Typical requirement |
|---|---|---|
| Commercial auto liability | Injury and property damage caused by your vehicles | Commonly $1M CSL — confirm your program's current requirements |
| Workers' compensation | Driver injuries on the job; required by most states | Statutory limits, often with employer's liability |
| General liability | Non-auto claims: slips, property damage, personal injury | Often $1M per occurrence / $2M aggregate |
| Auto physical damage | Repair or replacement of your vans | Comprehensive & collision, per lease terms |
| Cargo | Packages in your care while in transit | Commonly recommended |
Commercial auto liability
Auto liability is the single most important coverage for any last-mile fleet. Your drivers spend the day in traffic, in neighborhoods, and in parking lots, which makes accident frequency high. The Amazon DSP program commonly requires a $1M combined single limit, but do not assume — confirm your program's current requirements, since limits and endorsement forms are periodically updated.
Workers' compensation
Because DSPs employ their drivers directly, workers' compensation is mandatory in most states from your first hire. Delivery is one of the more injury-prone jobs in the economy — lifting, stairs, dog bites, slips on ice — and comp covers the medical bills and lost wages. Amazon typically requires proof before your drivers can work.
General liability
General liability covers the incidents that are not vehicle accidents: a package left on a step that someone trips over, damage to a customer's property, or a claim that arises off the road. It is a standard, relatively low-cost requirement that fills the gap the auto policy does not cover.
Auto physical damage
Since DSP vans are usually leased or financed, physical damage coverage is required to protect the asset. It pays to repair or replace a van after a collision, fire, theft, or weather event, and it keeps you operating when a vehicle goes down mid-route.
Why does Amazon require additional insured status?
Your DSP agreement will require you to name Amazon (and typically its affiliates) as an additional insured on your auto and general liability policies, usually with primary and non-contributory language and a waiver of subrogation. Practically, that means if an incident on your route leads to a claim, your policies respond first and your carrier will not seek to recover from Amazon.
This is normal in contractor arrangements and is not negotiable. The real work is making your certificate of insurance precisely match the entity names, endorsement forms, and limits your agreement lists. A certificate missing the additional insured endorsement or showing an incorrect limit will flag you as non-compliant and can pause your operation.
How much does Amazon DSP insurance cost?
Pricing hinges on fleet size, driver records, payroll, claims history, and location, so any number here is a planning range rather than a quote. For 2026, many DSPs see total annual insurance costs in the neighborhood of $8,000 to $15,000 per van across all lines combined — auto liability, physical damage, workers' comp, and general liability — with clean, established fleets trending lower per unit and newer operations with young drivers or prior losses running higher.
Treat these as typical ranges, not guarantees. Your actual premium comes from a quote built on your specific vehicles, drivers, and loss runs. Working with a broker who understands the DSP program helps you match the requirements without overbuying.
How do I stay compliant as a delivery service partner?
- Verify every limit and endorsement against your current DSP agreement.
- Keep certificates of insurance issued and updated at each renewal.
- Confirm Amazon and its named affiliates appear as additional insured with correct wording.
- Add or remove vans and drivers with your agent immediately — a lapse is a compliance failure.
- Consider cargo coverage; the cost of a lost or damaged load can far exceed the premium.
For federal context on commercial motor carrier obligations, see the FMCSA insurance filing requirements and the U.S. Department of Transportation's DOT resources.
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This article is general information, not insurance or legal advice, and does not represent Amazon or the DSP program. Requirements change — confirm your program's current requirements against your agreement. Last Mile Delivery Insurance is a division of Thrive Risk Management.