Amazon Relay: A Quick Guide to Insurance Requirements

Amazon Relay: A Quick Guide to Insurance Requirements

February 07, 2024

In the fast-paced world of logistics and transportation, Amazon Relay stands out as a key player in streamlining operations for carriers. As carriers prepare to join the Amazon Relay network, it's crucial to understand the insurance requirements set forth by the e-commerce giant. Meeting these requirements is not only a prerequisite for participation but also a vital aspect of ensuring a smooth and secure journey on the road.

 

General Liability:

Amazon Relay mandates specific minimums for general liability insurance to safeguard carriers and their operations. As a carrier, you must have a minimum of $2 million in aggregate coverage, with at least $1 million per occurrence. This coverage provides financial protection against third-party claims for bodily injury, property damage, or other liabilities that may arise during your operations.

 

Auto Liability:

Auto liability insurance is a critical component for carriers in the Amazon Relay network. Carriers are required to maintain a minimum of $1 million in liability coverage per occurrence. Additionally, Amazon insists on a minimum of $50,000 for trailer replacement coverage. This coverage ensures that carriers are financially equipped to handle liabilities arising from accidents involving their vehicles.

 

Cargo Liability:

Protecting the cargo being transported is a top priority for carriers and Amazon alike. Carriers operating within the Amazon Relay network must maintain a minimum of $100,000 in cargo liability coverage. This coverage safeguards the value of the cargo being transported, offering financial protection against potential losses or damages during transit.

 

Worker’s Compensation:

While every state, with the exception of Texas, mandates worker's compensation insurance if a company has employees, Amazon Relay emphasizes the importance of this coverage. Worker's compensation provides medical benefits and wage replacement to employees who may suffer work-related injuries or illnesses. Carriers with employees must ensure compliance with state regulations on worker's compensation to align with Amazon's standards.

 

Understanding and meeting Amazon Relay's insurance requirements is not only a legal obligation but also a strategic move to safeguard your business and ensure the smooth operation of your fleet within their network. Compliance with these insurance standards not only enhances the security of your operations but also reinforces your credibility as a reliable carrier partner.

 

For more information on insurance requirements or assistance in navigating the intricacies of Amazon Relay, feel free to contact our agency at 972-332-0549. Our team is dedicated to providing expert guidance and tailored solutions to meet the unique needs of carriers operating in the dynamic world of e-commerce logistics.