Does Amazon Provide Workers’ Comp for DSP Owners?
February 4, 2026 2:29 pmIf you own or operate an Amazon Delivery Service Partner (DSP) business, one of the most important questions you’ll ask is:
Does Amazon provide workers’ compensation insurance for DSP owners and drivers?
The short answer is: No. Amazon does not provide workers’ compensation coverage for your DSP business.
As a DSP owner, you are responsible for securing your own Amazon DSP workers’ comp insurance to remain compliant, protect your drivers, and avoid costly penalties.
But, this is a fairly in-depth topic, so let’s break it down clearly.
Who Is Responsible for Workers’ Comp in an Amazon DSP?
Amazon DSPs operate as independent businesses under contract with Amazon. While Amazon sets certain operational standards and insurance requirements, your DSP is legally responsible for:
- Carrying workers’ compensation insurance
- Covering medical expenses for injured employees
- Paying lost wages due to workplace injuries
- Meeting state compliance laws
If you have W-2 employees driving delivery routes, you are required to carry workers’ comp in most states, including New Jersey.
For a full overview of required coverages for delivery businesses, see our Amazon Parcel Delivery Insurance page.
Why Amazon Doesn’t Cover Workers’ Comp for DSPs
Amazon structures the DSP program so that each partner operates as a separate business entity. This means:
- Amazon is not the employer of record
- Amazon does not cover payroll injuries
- Amazon does not absorb workplace injury liability
If a driver gets injured lifting packages, slipping on ice, or involved in a delivery-related accident, your DSP’s workers’ compensation policy responds; not Amazon.
This is why having properly structured Workers’ Compensation Insurance in NJ is critical.
What Happens If You Don’t Carry Workers’ Comp?
Failing to carry proper Amazon DSP workers’ comp insurance can result in:
- Contract termination by Amazon
- State fines and stop-work orders
- Personal liability exposure
- Lawsuits from injured employees
- Major financial losses
In New Jersey specifically, businesses with employees are legally required to carry workers’ compensation insurance. Non-compliance can lead to severe penalties.
If you operate multiple vehicles or handle cargo, you may also need coordinated protection through Courier & Delivery Insurance coverage to avoid coverage gaps.
How Much Does Workers’ Comp Cost for an Amazon DSP?
Workers’ comp premiums for DSPs depend on:
- Total payroll
- Number of drivers
- Claims history
- Experience Modification Rate (MOD)
- State classification codes
Delivery driver classifications often carry higher base rates due to injury frequency.
Can DSP Owners Exclude Themselves from Workers’ Comp?
In some states, business owners may elect to exclude themselves from workers’ comp coverage. However, rules vary by state.
In New Jersey, certain corporate officers may be excluded, but this requires proper documentation and structuring.
Before making that decision, consult an expert familiar with DSP insurance structures.
Bottom Line: Amazon Does NOT Provide Workers’ Comp for DSP Owners
As an Amazon DSP owner, you are fully responsible for carrying workers’ compensation insurance for your drivers.
Amazon sets standards, but your business must meet them independently.
Proper coverage protects:
- Your employees
- Your contract
- Your business assets
- Your personal liability
Get Amazon DSP Workers’ Comp Coverage That Meets Requirements
At Capstone Coverage, we specialize in insurance solutions tailored specifically for:
- Amazon DSPs
- Delivery contractors
- Transportation businesses
- Courier operations
We understand Amazon’s expectations, New Jersey compliance laws, and how to structure policies that protect your business long-term.
👉 Request a quote today and make sure your Amazon DSP workers’ comp coverage is set up correctly.
Drivers are the backbone of any transportation business. We want to make sure they and your business stay protected.
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