While being an independent courier offers flexibility, navigating insurance requirements can be tricky. While the specific requirements will vary depending on the company you contract with, understanding the basics of auto and cargo insurance is essential for protecting yourself financially in the event of an accident. Here's a breakdown of the key points to ensure you're financially protected:

State Minimums vs. Company Requirements

Every company has its own insurance requirements, but you must always meet your state's minimums, which typically include:

• Bodily Injury Liability: Covers medical expenses for others you injure in an accident.
• Property Damage Liability: Covers damage to someone else's property caused by an accident you're responsible for.

Common minimums are $100,000/$300,000 Bodily Injury and $50,000 Property Damage. This means your insurance will cover up to $100,000 in medical bills per person injured, with a maximum of $300,000 total, and up to $50,000 in property damage.

However, many companies require more coverage, often mandating at least $100,000 in property damage liability or a more comprehensive $100,000/$300,000/$100,000 policy.

Why Personal Auto Insurance Isn't Enough

Standard auto insurance excludes "business use," which includes deliveries. If you have an accident while working with just personal insurance, your claim could be denied, leaving you responsible for repairs, medical bills, and even lawsuits.

Commercial Auto Insurance

Commercial auto insurance is designed for business use and provides comprehensive coverage while you work, including:

• Bodily Injury and Property Damage Liability: Similar to personal auto insurance, but with higher limits to meet company requirements.
• Collision Coverage: Pays to repair your vehicle if you're at fault in an accident.
• Comprehensive Coverage: Protects against theft, vandalism, fire, and other non-collision events.
• Uninsured/Underinsured Motorist Coverage: Protects you if you're hit by a driver without insurance or insufficient coverage.

Understanding Company-Offered Insurance

Some companies, like Amazon Flex, offer commercial insurance specifically for deliveries on their platform. However, these might have limitations, and not all companies offer such programs. Always inquire about a company's insurance policy for contractors before working with them.

Double-Check Your Coverage

Regardless of the company's policy, verify with your own insurer that your personal insurance covers deliveries. A simple call can prevent financial trouble later. Remember, using a personal policy for business without permission is a significant risk.

By understanding these points, you can make informed decisions about your insurance needs and ensure you're adequately protected on the road as an independent courier.