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Last-Mile & Delivery Insurance
Last mile delivery insurance for couriers, cargo vans, and Amazon DSP fleets
Commercial auto, cargo, and the full coverage stack last-mile delivery businesses run on, placed from Illinois in 40+ states. We know the Amazon DSP requirements line by line, so your certificate passes the first time.
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Last mile delivery insurance is the commercial program that covers the final leg of a shipment, from a local hub or store to the customer's door: commercial auto liability for the vans and cars on the route, cargo coverage for the packages inside them, workers compensation for the drivers, and the general liability and umbrella limits that delivery contracts demand.
Quick Answer: Delivery and last-mile insurance protects courier and delivery businesses against the everyday risks of putting drivers and packages on the road. The core is commercial auto liability, plus hired and non-owned auto, workers compensation, cargo coverage, and general liability. Amazon DSPs also need a $5 million umbrella and specific additional insured wording. Costs range from about $2,500 a year for a solo courier to $40,000 to $80,000+ for a full DSP fleet.
What a last mile delivery insurance program covers
A complete program stacks several coverages. We build the right combination for your fleet, your drivers, and your contracts.
Commercial auto liability
The backbone of every delivery policy. Covers bodily injury and property damage from an accident on the route. Amazon DSPs need a $1 million combined single limit.
Hired & non-owned auto
Protects your business when drivers use vehicles you do not own for work, even driving to the station. Required by Amazon and missed by most generic policies. See hired and non-owned auto.
Workers compensation
Covers driver injuries from loading, unloading, and accidents. Required in most states, and DSP drivers must be W-2 employees. See workers comp.
Cargo coverage
Pays for the packages and goods you carry if they are lost, stolen, or damaged in transit. Amazon requires cargo legal liability over $25,000 per loss.
General liability
Covers third-party injury and property damage off the road, such as a package left in a doorway that causes a fall. Handled through general liability.
Commercial umbrella
Extra limits over your auto and liability policies. Amazon requires a $5 million umbrella, where most agents quote too little. See commercial umbrella.
For Amazon DSP owners
We know the DSP Program requirements line by line
Amazon does not publish a simple checklist, and its automated system rejects certificates with the wrong limits or generic additional insured wording, delaying launches and costing routes. Here is exactly what the program requires:
✓Commercial auto liability at a $1,000,000 combined single limit
✓General liability of $1,000,000 per occurrence and $2,000,000 aggregate
✓Workers compensation with $1,000,000 employer's liability limits
✓Cargo legal liability greater than $25,000 per loss
✓A $5,000,000 commercial umbrella over auto and general liability
✓Amazon named as additional insured with specific endorsement language, primary and non-contributory
✓Drivers classified as W-2 employees, and carriers rated A- or better
We build the program to match, issue a certificate that passes Amazon's audit, and keep you compliant so a lapse never suspends your routes.
Who needs last mile delivery insurance
If a vehicle leaves your lot with someone else's goods in it, you are in the delivery business and a personal auto policy will not respond. These are the operations we quote most often.
Courier fleets and independent couriers
From one car running medical and legal courier routes to a fleet of cargo vans on contract with a regional carrier. Courier fleet insurance is rated on vehicles, drivers, radius, and what you carry.
Amazon DSP and other contracted fleets
DSP, FedEx Ground contractors, and retail last-mile partners. The contract sets the limits, the additional insured wording, and the carrier rating, and the certificate has to match exactly.
Parcel, furniture, and appliance delivery
Box trucks and sprinters doing threshold or white-glove delivery. Cargo limits and inland marine for customer goods matter as much as auto here. See box truck insurance.
Food, pharmacy, and grocery delivery
Restaurants and stores that run their own drivers, and the delivery companies that serve them. Hired and non-owned auto covers employees driving their own cars on your behalf.
Gig drivers going independent
Flex, DoorDash, and Instacart drivers who form an LLC and sign direct contracts. The jump from a platform's limited coverage to your own commercial auto policy is the first thing a contract will ask for.
Why courier and delivery businesses need specialized coverage
Last-mile delivery is one of the fastest-growing corners of commercial transportation, and it carries real exposure: drivers on the road all day, tight schedules, and customers' goods in every vehicle. The biggest trap is the personal auto policy. Personal coverage almost always excludes business and delivery use, so a crash on the route can be denied outright, leaving the owner personally exposed.
Most delivery vans sit below the 10,001-pound threshold that triggers federal FMCSA registration, so owners assume light requirements, but they still need full commercial auto, cargo, and liability coverage, and contracts like Amazon's raise the bar much higher. As an independent brokerage we shop carriers that specialize in delivery and last-mile risk, layer the coverage correctly, and connect this to your box truck (see box truck vs. cargo van insurance) or commercial trucking coverage as your fleet grows.
How much does delivery and courier insurance cost?
Cost scales with fleet size, payroll, vehicles, and contract requirements. Typical ranges by profile:
| Delivery business profile | Typical annual |
|---|---|
| Independent courier (1 van, auto + general liability) | $2,500 to $6,000 |
| Growing delivery business (3 to 10 vehicles) | $15,000 to $40,000 |
| Amazon DSP fleet (20 to 40 vans, full program) | $40,000 to $80,000+ |
Ranges are 2026 estimates for budgeting, not quotes. Commercial auto and workers compensation are the largest drivers, and the required $5 million umbrella adds meaningful cost on DSP programs.
Your exact number
Ranges are a starting point. Get the real delivery insurance premium for your business in about two minutes.
Three quick questions, no uploads, no spam. We shop it across our markets and a licensed producer replies within one business day with the number and what drives it.
Last mile delivery insurance in Illinois
We write delivery programs in 40+ states from offices in Elgin and Huntley, and Illinois is home base. Four state-specific points shape the policy.
| Illinois rule | What it means for a delivery business | Source |
|---|---|---|
| State minimum auto liability 625 ILCS 5/7-203 | Illinois requires only $25,000 per person, $50,000 per accident, and $20,000 property damage. Nearly every delivery contract we see asks for a $1,000,000 combined single limit, forty times the state floor, so the legal minimum is never the number to buy. | 625 ILCS 5/7-203 |
| Workers compensation 820 ILCS 305 | Illinois requires workers compensation for nearly every employer with employees, part-time drivers included. Misclassifying W-2 drivers as 1099 contractors is the audit finding that produces back premium and penalties. | Illinois Workers' Compensation Commission |
| Under 10,001 lbs, no federal filings | Most cargo vans and sprinters sit under the 10,001-pound GVWR line that defines a commercial motor vehicle in the federal rules, so there is no USDOT number or MCS-90 to file for intrastate routes. The trade-off: nothing forces a minimum, so the contract and the lender are the only guardrails. | FMCSA |
| Cook County and the collar counties | Routes that run through Chicago and the collar counties are rated in one of the most expensive auto liability territories in the Midwest. Garaging address, radius, and where the drivers actually run are the three questions that move a Chicago-area quote the most. | Underwriting territory, confirmed at quote |
Summary for insurance planning, not legal advice. For the state-specific trucking side, see our trucking insurance page.
What our clients say
Why delivery businesses choose Pro Insurance Group
We know the DSP rules
Exact limits, the $5M umbrella, and the additional insured language Amazon's system actually accepts.
Independent market access
We shop carriers that specialize in delivery and last-mile risk instead of forcing a generic policy.
Fast, audit-ready COIs
Certificates and additional insureds turned around fast, so a launch or contract never waits on us.
We grow with you
From one van to a full fleet, we adjust coverage as you add vehicles, drivers, and routes.
Last mile delivery insurance FAQ
What insurance does a delivery business need?
Most delivery businesses need commercial auto liability as the foundation, plus hired and non-owned auto, workers compensation for drivers, cargo coverage for the goods you carry, and general liability. Larger operations and Amazon DSPs also need a commercial umbrella. The right mix depends on your fleet size and contracts.
What are Amazon's DSP insurance requirements?
Amazon's Delivery Service Partner program requires commercial auto liability at a $1,000,000 combined single limit, general liability of $1,000,000 per occurrence and $2,000,000 aggregate, statutory workers compensation with $1,000,000 employer's liability, cargo legal liability over $25,000, and a $5,000,000 commercial umbrella. Amazon must be named as additional insured with specific endorsement language, drivers must be W-2 employees, and carriers must be rated A- or better.
How much does delivery or DSP insurance cost?
An independent courier with one van and liability may pay $2,500 to $6,000 per year. A growing delivery business with several vehicles runs $15,000 to $40,000, and a full Amazon DSP fleet of 20 to 40 vans commonly costs $40,000 to $80,000 or more per year. Fleet size, payroll, location, and claims history drive the price.
Does my personal auto policy cover delivery driving?
No. Personal auto policies almost always exclude business and delivery use, so a claim while delivering can be denied. Delivery work requires a commercial auto policy, and any driver using a vehicle not owned by the business needs hired and non-owned auto coverage.
What is hired and non-owned auto and do I need it?
Hired and non-owned auto covers your business when employees drive vehicles you do not own for work, even just driving to the station. Amazon requires it, and most delivery operations need it because a personal policy will not respond to a business-use claim.
Do delivery drivers need to be W-2 employees?
For Amazon DSPs, yes. Amazon does not accept 1099 contractors for delivery routes, and drivers must be W-2 employees covered by workers compensation. Other delivery models may differ, but misclassifying drivers is a common and costly mistake.
Do I need a USDOT number or FMCSA filings for a delivery van?
Usually not. Cargo vans and sprinters under 10,001 pounds GVWR running inside Illinois fall below the federal commercial motor vehicle threshold, so there is no USDOT number or MCS-90 filing. Cross a state line with a vehicle over that weight and the federal rules apply. Either way, the insurance contract you sign sets the real limits.
Get your delivery business covered today
Whether you run one van or a full DSP fleet, a licensed advisor will build a compliant program and shop it across carriers. No pressure.
Get My Delivery Quote Call 833-776-4671NF
Reviewed by Neal Fusco, VP Commercial Lines
25+ years placing commercial auto and transportation coverage across Illinois and 40+ states.
Pro Insurance Group is an independent insurance brokerage and is not affiliated with, endorsed by, or sponsored by Amazon.com, Inc. or its subsidiaries. Amazon and Delivery Service Partner are trademarks of Amazon.com, Inc. Requirements are summarized for general guidance and may change; always confirm current terms in your DSP agreement.
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