Understanding Amazon DSP Insurance Coverage Options

Understanding Amazon DSP Insurance Coverage Options

Operating as an Amazon Delivery Service Partner (DSP) business comes with significant responsibility, especially when it comes to insurance.

Amazon sets strict requirements, but as a DSP owner, you are fully responsible for building and maintaining your own insurance program. Understanding your Amazon DSP insurance coverage options is essential to staying compliant and protecting your business long-term.

If you’re new to the delivery space, start by reviewing how Amazon structures contractor insurance through our overview of Amazon Parcel Delivery Insurance.

What Insurance Does an Amazon DSP Need?

Amazon DSP insurance isn’t a single policy. It’s really a coordinated coverage program.

At minimum, most DSPs carry:

Commercial Auto Insurance

Your fleet must be covered under commercial auto liability policies. Personal auto insurance does not apply to delivery operations. This protects against accident-related injuries and property damage while drivers are on route.

Workers’ Compensation Insurance

If you employ drivers, you are required to carry workers’ comp in most states, including New Jersey. This protects your business from workplace injury claims and keeps you compliant with state law. Learn more about requirements through our guide on Workers’ Compensation Insurance in NJ.

Cargo & General Liability Coverage

Cargo insurance protects packages while in your care, while general liability addresses third-party injury or property damage claims not related to vehicle accidents. For broader delivery operations, visit our Courier & Parcel Delivery Insurance page.

These policies all work together to create a complete protection framework.

Why Amazon DSP Insurance Requires Careful Structuring

Many DSP owners assume meeting minimum requirements is enough. It’s not.

Improper structuring can lead to:

• Coverage gaps
• Costly audits
• Compliance issues
• Contract risk

Insurance must account for payroll, fleet size, driver history, and operational growth. Because delivery operations carry higher exposure, premiums and classifications must be handled carefully.

Choosing the right insurance partner makes a significant difference.

How Much Does Amazon DSP Insurance Cost?

Costs vary depending on:

• Number of vehicles
• Driver records
• Payroll totals
• Claims history
• State regulations

Delivery businesses are considered higher risk, but proper planning and risk management can help stabilize long-term costs.

The key is building a program designed specifically for Amazon DSP operations and not adapting a generic commercial auto policy.

Why Proper Coverage Protects More Than Compliance

Your Amazon DSP insurance program protects:

• Your contract with Amazon
• Your drivers
• Your vehicles
• Your business assets
• Your personal financial exposure

Insurance isn’t just about satisfying requirements. It’s a long term solution protecting the future of your delivery operation.

Get Amazon DSP Insurance Built for Delivery Businesses

At Capstone Coverage, we specialize in insurance programs designed specifically for:

• Amazon DSP operators
• Delivery contractors
• Transportation fleets
• Courier businesses

We understand Amazon’s expectations and New Jersey compliance laws — and we structure coverage accordingly.

👉 Request a quote today and make sure your Amazon DSP insurance coverage is built correctly from day one.

Your DSP operation moves fast. Your insurance program should keep up.

Categorized in: Amazon DSP, Blog