In some cities, delivering for Amazon Flex provides consistent and worthwhile work. Although the tasks remain straightforward, freelancers must procure insurance to protect themselves, their vehicles, and their assets through policies such as Amazon Flex Insurance.
The rise of rideshare and delivery opportunities has created new commercial vehicle insurance needs.
Data from the Bureau of Labor Statistics
shows that delivery and driver/sales jobs will increase by 11% from 2021 to 2031. Thus, insurance providers and corporations have adjusted.
For example, freelancers who drive their vehicles to deliver or transport passengers must find cost-effective ways to insure their cars and themselves.
Therefore, independent contractors must find out if their work requires them to purchase additional insurance or if it is standard.
Amazon offers freelancers several perks, including insurance coverage, while actively delivering packages.
However, delivery independent contractors run into a conundrum. Commercial insurance covers independent contractors and their vehicles while actively delivering packages or transporting passengers.
The caveat is that it stops covering them in between drop-offs. Thus, entrepreneurs must balance personal and commercial auto insurance policies.
Amazon Flex insurance is excellent for freelance delivery drivers, but it does have some limits.
The following is everything you need
to know about Amazon Flex Insurance.
What Is Amazon Flex Insurance?
Amazon Flex Insurance is a commercial vehicle insurance policy offered to its independent contractors while actively delivering packages.
The policy provides:
- Liability insurance of $1,000,000
- Comprehensive and collision coverage for up to $50,000
- Uninsured and underinsured motorist coverage for up to $1,000,000
Therefore, the policy acts the same as other commercial auto policies. The difference is that Amazon issues it.
Drivers in New York state face different requirements than drivers in the rest of the country. Thus, they’ll need to speak with local insurance agents who can provide additional guidance.
When Does the Policy Kick in?
Freelancers must satisfy a few requirements before becoming eligible for coverage. Amazon stipulates that independent contractors must maintain personal auto insurance.
Amazon’s policy covers delivery professionals while actively delivering. However, the policy stops covering in between drops and on the way home or to the delivery spots.
Flex delivery drivers use their vehicles. Therefore, the assumption is that individuals will also use it for non-delivery tasks. For example, you might grab lunch after morning deliveries.
Then, you may pick up a bite after afternoon deliveries. Amazon will cover accidents during deliveries. It won’t cover collisions that occur before or after delivery.
The actual policy kicks in after a collision or accident. Then, drivers must follow typical vehicle accident protocols, such as documenting the incident, calling the local authorities, and obtaining the other drivers’ insurance information.
How Much Does It Cover?
As mentioned earlier, Amazon Flex insurance has three components: liability, uninsured and underinsured, and comprehensive and collision coverage.
Therefore, the policy offers standard coverage amounts.
Independent contractors should keep in mind that the policy only covers them. It does not protect passengers. The policy also does not cover other individuals who might drive the vehicle.
How Much Does It Cost?
Amazon Flex Insurance is free if freelancers meet the company’s insurance requirements.
Therefore, the insurance costs freelancers working for Amazon will depend on their auto insurance policies.
The rise of freelance delivery opportunities has created new markets for insurance companies. Gig workers can find policies that charge based on the amount they plan to work.
New policies charge rates based on the number of miles driven.
Thus, delivery professionals must sit down and explore their insurance needs. One driver might need to purchase personal and commercial auto policies. Then, freelancers who deliver for Amazon will qualify for the Flex policy.
What Are the Benefits?
Since Amazon Flex Insurance is free, the zero cost is a benefit in and of itself. Also, Amazon is a powerful corporation that must protect its brand and business partners, including freelancers.
Delivery professionals will go through the standard claim process. However, Amazon has a vested interest in making it seamless.
Nonetheless, the free insurance is a nice perk.
Delivery professionals who work as independent contractors for Amazon enjoy Amazon Flex Insurance coverage. Although they must balance it with a personal auto insurance policy, it’s still a saving and beneficial policy.