Amazon Relay: Insurance Requirements
Carrying loads for Amazon Relay can be a lucrative opportunity for motor carriers, but it comes with stringent insurance requirements. Ensuring you meet these requirements is crucial for both compliance and the protection of your business.
1. Commercial General Liability
Minimum Coverage: $1,000,000 per occurrence and $2,000,000 in the aggregate.
Purpose: This coverage protects your business from claims involving bodily injury, property damage, and personal injury that could arise from your business operations. It’s essential for covering legal fees and potential settlements or judgments in case of lawsuits.
2. Commercial Auto Liability
Minimum Coverage: $1,000,000 per occurrence.
Trailer Replacement Coverage (Trailer Interchange): $50,000.
Purpose: Auto liability insurance covers damages or injuries caused by your vehicles during the course of business. The trailer replacement coverage ensures that if your trailer is damaged or destroyed, you have the financial means to replace it quickly, minimizing downtime.
3. Cargo Insurance
Minimum Coverage: $100,000.
Purpose: Cargo insurance protects the goods you are transporting. In the event of theft, loss, or damage to the cargo, this coverage helps you recover the costs, ensuring that your clients are compensated and your business reputation remains intact.
4. Workers’ Compensation Insurance (if you have employees)
Requirement: Coverage in all jurisdictions where your company operates.
Purpose: Workers’ compensation insurance provides medical benefits and wage replacement to employees who are injured on the job. It’s mandatory in most states and helps protect your business from lawsuits filed by injured workers.
5. Employer Liability Insurance
Minimum Coverage: $100,000 per occurrence.
Purpose: In addition to a workers’ compensation policy. It provides coverage for lawsuits filed by employees for work-related injuries or illnesses not covered by workers’ compensation. This coverage helps protect your business from significant financial loss due to legal actions.
Why Meeting These Requirements is Important
Meeting Amazon Relay’s insurance requirements is not just about compliance; it’s about safeguarding your business. Adequate insurance coverage ensures that you are protected against a variety of risks that could otherwise lead to substantial financial losses. Here’s why each type of insurance is important:
Financial Protection: Without the required insurance, your business could be liable for significant out-of-pocket expenses in the event of an accident or lawsuit.
Operational Continuity: Insurance helps ensure that your business can quickly recover from incidents like vehicle damage or cargo loss, minimizing downtime.
Reputation Management: Adequate insurance coverage demonstrates professionalism and reliability, which is crucial for maintaining trust with clients and partners like Amazon.
Legal Compliance: Adhering to Amazon Relay’s insurance requirements helps you avoid penalties and legal issues that could arise from non-compliance.
Other Requirements
Must have an active USDOT number with interstate authority for a minimum of 180 days.
Must be authorized for property and for hire.
A Federal Motor Carrier Safety Administration (FMCSA) safety rating of “Satisfactory,” “None,” or “Not Rated.”
Behavior Analysis and Safety Improvement Categories (BASIC) Scores must be:
Unsafe Driving: Below 60%.
Hours of Service (HOS) Compliance: Below 60%.
Vehicle Maintenance: Below 75%.
Controlled Substances/Alcohol: Below 75%.
Driver Fitness: Below 75%.
