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Financing and insurance for Amazon Delivery Service Partners (DSPs)

A delivery business with many employees, branded vans, and pay set by one program's schedule.

Short answer

Three things usually come first for a delivery service partner (DSP) owner. One is cash to make payroll and cover startup and growth costs, because a DSP is a people business first. Another is understanding which vehicles and coverages come through the program and which are yours to arrange. The third is employee coverage, because DSPs hire and manage their own drivers. BreadRoute is not affiliated with Amazon, and the program's own agreements govern anything it provides. Providers and insurers decide what they offer, not us.

Which financing products do DSP owners usually look at?

Amazon describes DSPs as independent businesses that hire and manage their own employees and set their own wages. That makes payroll the biggest recurring cost, and the timing of program payments against payroll the usual cash question.

  • Working capital

    Startup costs, hiring, and growth before payments catch up. Add up the total you would repay before you sign.

  • Line of credit

    Payroll timing against program payments, in reusable amounts, once you have the history providers look for.

  • SBA loans

    SBA 7(a) loans can fund working capital, and some owners use them to start or buy a delivery business.

  • Equipment financing

    Vehicles or equipment you own outside anything the program provides. Check your agreement first.

Factoring and accounts receivable financing depend on how your agreement pays you and whether it allows pledging receivables, so read it and ask before you assume either fits. Fuel cards matter only for vehicles that burn fuel and aren't covered by the program; we do not currently route fuel card requests.

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Which insurance lines do DSP owners usually ask about?

Some vehicles and coverages may come through the program, and some are yours to arrange. Read your program agreement and give it to your insurance agent before you assume either way. Policies vary, so read the declarations, definitions, and exclusions.

  • Workers' compensation

    DSP drivers are employees of the DSP. Requirements depend on your state, and delivery work brings frequent minor injuries.

  • Management liability

    Many employees means employment claims, such as wrongful termination or wage disputes. Ask what is covered.

  • Primary auto liability

    Check what the program arranges for its vans and what your agreement asks you to carry for any other vehicle.

  • General liability

    Deliveries onto customers' property, and any office or lot you run.

  • Commercial umbrella

    Higher total limits above your primary policies, if your agreement or your own risk calls for it.

Also worth a look: cyber for payroll systems and employee data, physical damage for any vehicle you own outside the program, and inland marine for handheld devices and equipment you own.

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What makes a DSP different?

You are an employer first. Amazon says DSPs, as independent businesses, hire and manage their own employees, and that individual wages are set by the DSPs. That puts workers' compensation and employment practices at the center of the insurance picture, and payroll at the center of the cash picture.

Know what the program provides. Any vans, insurance, or other support offered through the program are governed by your agreement with Amazon, and those terms can change. List what the agreement covers, what it requires you to carry, and what it leaves to you. Coverage gaps usually hide in the space between the two.

Vehicle weight shapes the rules. Federal financial responsibility rules don't apply to a vehicle rated under 10,001 pounds, except for certain dangerous materials, and federal commercial motor vehicle rules start at 10,001 pounds in interstate commerce. Many delivery vans are rated under that line and some are not, so check each vehicle you run.

Read the broader pages. Couriers and small fleets cover delivery work and growing a fleet, and last-mile delivery covers delivery businesses with their own customers.

Frequently asked questions

Is BreadRoute part of the Amazon DSP program?

No. BreadRoute is not affiliated with Amazon. This page explains general financing and insurance questions for delivery businesses in the program. Your agreement with Amazon governs what the program provides and requires.

Who employs DSP drivers?

The DSP. Amazon describes DSPs as independent businesses that hire and manage their own employees, with wages set by each DSP. That is why workers' compensation and employment coverage come up first for owners.

What financing fits a new DSP?

Usually something built for working capital, because early costs are hiring, training, and payroll before payments catch up. Working capital and SBA loans are the common starting points, and a line of credit tends to come once you have history. Providers decide terms.

Does the program's insurance cover everything?

Don't assume it does. Read what your agreement provides and what it requires you to carry, then ask your insurance agent where the gaps are. Employee injuries, employment claims, and anything outside the program's vehicles are common places to check.

Do federal trucking insurance minimums apply to delivery vans?

Not to a vehicle rated under 10,001 pounds, except for certain dangerous materials. Heavier vehicles in interstate for-hire work can be covered. State rules and your program agreement are separate. We can't tell you which apply to you.

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