FedEx ISP Parcel Delivery Insurance

If you’re a FDX, ISP or TSP, it is best to know exactly how your insurance works in relation to FDX and your employees.  And, it is best to know how to reduce your risk.  We’ll find you the best parcel delivery insurance coverage options and keep premiums low, so insurance is one less thing on your to-do list.

FedEx Parcel Delivery Insurance Since 2011

As a FedEx ISP or TSP contractor, you are responsible for many things. Remember, you’re not an employee of FedEx, and thus, do not have their corporate-level protections.  The reality is, you need your own insurance — but not just any insurance. You need to protect your own liability. You need to protect your workers and your profits (yes, we know the current state of FDX contractors and are hoping for great improvements). Our agency specializes in this specialty coverage, so you’ll have both the financial and legal protections in place, in the event of an auto accident, injury or the what-in-the-heck just happened today scenario.

What’s more, we make the process as simple (and fast) as possible so you can hit the ground running.

Since 2011, we have had the same goals for FDX ISPs & TSPs: keep FedEx contractors & employees safe, and keep insurance premiums low.

Paradiso Insurance is the only independent insurance agency in the country that has created the best national workers compensation insurance programs for FedEx Local P&D and Line Haul Contractors. As a creator of insurance programs, we have a duty to bring in the better risks and keep losses down as low as possible.  We also work hard to help brand new contractors and existing contractors, that have had claims issues, get into the proper insurance programs and help guide them along the way to lower premiums and better insurance options.

Parcel Delivery Insurance Options:

Workers Compensation Insurance

  • Guaranteed Rate / Traditional Policy Exclusively for FedEx ISPs & CSPs (no down payment with pay-as-you-go)
  • Turbo FedEx Ground & Amazon Work Comp Captive Program
    • Return of premium is up to 30% of premium
    • Two meetings a year to share best practices amongst the top FDX contractors in the country
  • Large Account Single Captive for Work Comp
  • PEOs (line haul only)
  • Dividend program based only on your performance
    • No down payment
    • No Collateral
    • Dividend is up to 36% of the premium (amount of premium and loss ratio determine the percentage of dividend)

More Insurance Offerings

  • Non-Trucking Liability & Physical Damage for FedEx Service Providers
  • Employment Practices Liability and Directors and Officers Coverage: We have been promoting this coverage for 11+ years and have so much experience in this arena.
  • General Liability for FedEx Service Providers needs and landlord needs
  • And more for Parcel Delivery Operations

 
In June 2016, we started the Turbo FedEx Service Providers Work Comp Insurance Group Captive, which has been a great success. We boast some of the greatest FedEx ISPs and Line Haul TSPs, from CA all the way to NY, as members and friends.

What FedEx Requires You To Carry

Your insurance obligations are not a matter of opinion — they are written into your ISP or TSP agreement, and FedEx will hold you to them before you can run a route. The categories almost every service provider has to satisfy are:

  • Commercial auto liability on every vehicle in the operation, whether you own it, lease it or rent it.
  • Workers compensation for your W-2 employees, at the limits your state requires.
  • Physical damage on the vehicles, particularly where a lender or lessor has an interest in them.
  • Cargo coverage for the packages in your possession.
  • General liability for your business operations, and for your terminal or building if you have one.

Two details trip up more contractors than the coverage itself. First, FedEx normally has to be named on the policy — as an additional insured, a certificate holder, or both. Those are three different things, and the wrong one means a rejected certificate. Second, a certificate of insurance has to be on file and current, or your trucks do not roll.

The specific limits are set in your agreement, and they are not identical for every contractor or every location. Send us your agreement and we will read the insurance article for you and tell you exactly what it demands — no charge, and no obligation to move your policies to us.

ISP, TSP, CSP or Line Haul — Which One Are You?

The letters matter, because they change what you have to buy.

  • ISP (Independent Service Provider) — local pickup and delivery under the Independent Service Provider model, running negotiated service areas with W-2 drivers. Workers compensation is unavoidable here.
  • TSP (Transportation Service Provider) — the line haul side, moving freight between FedEx facilities, usually with tractors and heavier equipment and longer runs.
  • CSP (Contracted Service Provider) — the broader service provider designation you will see used across FedEx Ground contracting.
  • Multi-route owners — once you are running several routes, or holding both P&D and line haul work, your exposure changes enough that a single off-the-shelf policy usually stops being the cheapest answer.

A local P&D operation with eight step vans and fifteen W-2 drivers is a completely different risk from a two-tractor line haul run. We write both, and we do not price them the same way.

Workers Compensation vs. Occupational Accident

This is the most expensive misunderstanding in the parcel business, and it costs contractors their businesses.

Workers compensation is a state-mandated coverage for employees. If you have W-2 drivers, your state requires it, and an occupational accident policy does not satisfy that requirement no matter what anyone tells you. Going without it exposes you to state penalties, stop-work orders, and personal liability for an injured driver’s medical care and lost wages.

Occupational accident is a different product. It pays medical and disability benefits after an injury, but it is not workers compensation, it carries hard dollar caps, and it does not give you the employer liability protection that comp does. It shows up mainly on the line haul side, where contractors run 1099 owner-operators rather than employees.

The question of whether you can use one instead of the other comes down to how your drivers are actually classified — not how you would prefer to classify them. Misclassifying an employee as a contractor is its own expensive problem, and it tends to surface at exactly the worst moment: after an injury. If you are not certain which side of the line your drivers fall on, ask us before your next renewal, not after a claim.

What Drives Your Premium

Parcel insurance is priced on your operation, not on a rate card. The levers that move it most:

  • Payroll and headcount — the primary driver of your workers compensation cost.
  • Your loss history and experience modification factor — past claims follow you for years, which is exactly why loss control pays for itself.
  • The state or states you operate in — comp rates are set at state level and the spread between them is large.
  • Vehicle count, type and value — step vans, cargo vans and tractors rate very differently.
  • Driver motor vehicle records and how rigorously you screen at hiring.
  • Whether you have a real safety program — documented training, injury reporting and a light duty plan.

We do not publish premiums on this page, because a number pulled off a web page is not a quote and the honest answer depends on all six of those. What we will do is tell you which of them is hurting you most, and what it would take to change it.

FedEx Contractor Insurance FAQs

Does FedEx provide insurance for its contractors?
No. You are an independent business owner, not a FedEx employee, and you carry your own coverage. Your agreement tells you what you must carry; buying it is on you.

Do I need workers compensation if I only have a couple of drivers?
Almost certainly yes. Most states require it from the first employee, and the thresholds that do exist are low. Check your state rule before you assume you are exempt.

Can I use occupational accident coverage instead of workers comp?
Not for W-2 employees. It is sometimes used for 1099 owner-operators on the line haul side, but it is not a substitute for a comp policy where employees exist.

What is a group captive, and would I qualify?
A captive is an insurance company owned by its members. Instead of your premium disappearing into a carrier’s pool, good performance can come back to you. It rewards contractors who genuinely control losses, and it is not the right answer for everyone — we will tell you honestly if you are not a fit yet.

Do I have to name FedEx on my policy?
Usually yes, and the exact wording matters. Additional insured, certificate holder and loss payee are not interchangeable. Send us the requirement and we will issue it correctly the first time.

I have had claims and my renewal came back ugly. Can you help?
That is a large part of what we do. We work with brand new contractors and with contractors coming off a bad loss year to get them back into workable programs.

The Paradiso Parcel Delivery Insurance Difference:

  • Save Real Money
  • Aggressive claims handling
  • Proactive loss control efforts designed specifically for parcel delivery
  • Pay-As-You-Go Work Comp, weekly or monthly
  • No down payment
  • We have an in-house claims facilitator
  • We are there for you 24/7
  • We help you establish a safety plan to prevent accidents
  • We have an in house workers comp auditor

Call us today at (860) 453-0116 OR Complete The Form On This Page

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