If you’re looking to join Amazon Relay and transport freight for the e-commerce giant, understanding the insurance requirements is essential. The right insurance coverage is crucial to protect your business, your assets, and the goods you’re transporting. In this guide, we will break down Amazon Relay’s insurance requirements, including the necessary coverages and policy details you need to know.
Why Insurance is Important for Amazon Relay
Insurance is a non-negotiable part of being an Amazon Relay carrier. It ensures that you’re protected in case of accidents, theft, or damages during transit. Without the right coverage, you could face financial risks that could negatively affect your business.
When participating in Amazon Relay, the minimum insurance coverage includes auto liability, cargo liability, and commercial general liability insurance, among others. These policies are designed to safeguard your business while you’re out on the road.
Minimum Insurance Coverage for Amazon Relay
1. Auto Liability Insurance ($1,000,000 Per Occurrence)
Auto liability insurance is the most critical coverage required by Amazon Relay. This insurance is required to be at least $1,000,000 per occurrence, meaning that in case of an accident, the policy will cover up to $1 million in damages, medical bills, and other costs for which you’re liable.
It covers:
- Damages or injuries to other parties involved in an accident
- Trailer replacement costs (Amazon requires $50,000 for this)
- Costs related to physical damage or accidents caused by your truck
Having this coverage is mandatory to drive for Amazon Relay and ensures you’re covered in case of unexpected incidents on the road.
2. Cargo Liability Insurance (Minimum $100,000)
Cargo liability insurance protects you in case the goods you’re transporting are damaged or lost. This is especially important if you’re transporting high-value goods, such as electronics or fragile items.
Amazon requires a minimum of $100,000 in cargo liability coverage. This coverage helps you recover the financial costs if your cargo is damaged, lost, or stolen during transport, ensuring you’re not left with a huge financial burden.
3. Commercial General Liability Coverage
Commercial General Liability (CGL) insurance covers non-vehicle-related incidents that could occur during business operations. This includes property damage, bodily injury, or accidents that happen at your facility, or while performing services related to your trucking operation.
Amazon requires:
- $1,000,000 per occurrence
- $2,000,000 aggregate
This coverage is crucial for protecting your business from a variety of risks outside of vehicle accidents.
Additional Insurance Requirements
Beyond auto liability, cargo liability, and commercial general liability, Amazon Relay may require additional coverages depending on your business operations.
Trailer Interchange Insurance
In addition to auto liability, you must have trailer interchange insurance, which helps pay for physical damage that could occur to a trailer you are using but don’t own. Amazon requires $50,000 for this coverage.
Policy Limits and Deductibles
In addition to the minimum coverage amounts, Amazon Relay also specifies acceptable deductible ranges and policy limits. Understanding these will help you choose the right coverage for your needs.
- Auto Liability Insurance should have a minimum coverage of $1,000,000 per occurrence, with trailer replacement coverage at $50,000.
- Cargo Liability Insurance should be at least $100,000.
- Commercial General Liability must cover at least $1,000,000 per occurrence and $2,000,000 in the aggregate.
Deductibles generally range from $500 to $1,000, meaning you’ll need to cover these amounts out-of-pocket before your insurance coverage kicks in. You’ll need to balance the cost of a deductible with the need for affordable premiums.
Proof of Insurance
Once you’ve secured the right coverage, you’ll need to submit proof of insurance to Amazon Relay. You must provide the following documentation:
- Commercial General Liability insurance (at least $1,000,000 per occurrence and $2,000,000 in the aggregate)
- Auto Liability insurance (at least $1,000,000 per occurrence)
- Cargo Liability insurance (at least $100,000)
- Your DOT (Department of Transportation) number or MC (Motor Carrier) number
- Trailer Interchange coverage ($50,000)
The certificate must be submitted via email to Registry Monitoring Insurance Services (RMIS) in accepted formats such as PDF or JPEG from an agent or Insurance Company. Be sure to double-check all information to avoid delays in verification.
Maintaining Coverage and Avoiding Gaps
Insurance for Amazon Relay insurance policies typically last for one year, and regular renewal is essential to avoid service interruptions. If coverage lapses, Amazon Relay will suspend participation, which can lead to delays and disruptions.
Starting the renewal process a few weeks before expiration is a good practice to ensure continuity.
Common Insurance Issues and How to Resolve Them
While securing insurance for Amazon Relay is straightforward, there are a few common issues that could arise:
- Incomplete Documentation: Ensure all documents are complete and up-to-date, including the required DOT number or MC number.
- Insurance Provider Issues: If your insurance provider doesn’t meet Amazon’s standards, contact them immediately to address any issues.
- Coverage Gaps: Always check for any gaps in coverage before your policy expires. These can lead to delays in approval or participation.
Tips for Getting the Right Coverage
- Work with Insurance Brokers: An insurance broker can help you find the best coverage that meets Amazon’s requirements. They can compare policies, find better deals, and manage your renewals.
- Shop Around: Don’t settle for the first insurance provider you find. Compare coverage limits, deductibles, and premium rates to ensure you’re getting the best deal.
- Stay Proactive: Regularly review your insurance coverage to ensure it’s up-to-date and adequate for your needs.
Conclusion
Meeting Amazon Relay’s insurance requirements is essential for protecting your trucking business while ensuring you can transport goods for Amazon. Key coverages include auto liability, cargo liability, commercial general liability, and trailer interchange insurance. By securing the right insurance and maintaining compliance with Amazon’s requirements, you can run a successful trucking operation without worrying about financial risks.
Need Help with Your Insurance Coverage?
Partner with Alvix Insurance Group for all your Amazon Relay insurance needs. Our team of experts will help you navigate the insurance requirements, secure the best coverage, and ensure your trucking business stays compliant. Get in touch with us today to discuss your insurance options and get a quote tailored to your business. We’re here to help you protect your business and succeed on the road.
