FedEx is one of the largest shipping companies in the world. FedEx provides various services, including ground, air, and international delivery. FedEx also offers FedEx Ground Freight, FedEx Home Delivery Mail Service, FedEx Express Freight, FedEx International Priority, and other specialty services.
All of these require an ISP (Independent Service Provider) or IC (Independent Contractors) to provide the service on behalf of FedEx. However, FedEx has a variety of operating requirements, and FedEx mandates that their ISP or ICs must follow these.
Here are 4 Things You Can’t Forget When Becoming a FedEx Independent Contractor or Independent Service Provider.
- FedEx Independent Contractors Requirements
Ground contractors transport packages between FedEx ground hubs on long-haul routes. You must provide your tractor (or rig), but FedEx will supply the trailer. As a ground contractor, you’re responsible for your personal and commercial costs.
The following are the requirements if you want to become a FedEx Insurance Specialist:
- At least one year of commercial driving experience within the last 3 years is required;
- Have no history of drug or alcohol testing;
- Have a valid commercial driver’s license;
- Be able to cross the border into Canada.
- FedEx Independent Contractors Responsibilities
There are essentially 3 main types of FedEx independent contractors, and their responsibilities are the following:
- Custom Critical Owner Operator
These are FedEx Custom Critical’s core employees. If you’re willing to work hard and have your car (or several), this may be the job for you.
- Ground Independent Contractor
People who work as ground independent contractors transport packages on the “long-haul” FedEx ground route. You’ll need your tractor, but FedEx will supply a trailer. In this job, you are responsible for your costs.
- Home Delivery Independent Contractor
Delivering things to people’s doors! A home delivery independent contractor drives along a route and delivers packages. You must own your vehicle and bear all the associated business costs in this position.
- FedEx Independent Service Provider Requirements
The 5-route/500-daily deliveries requirement applies to the ISP model. Contractors must also comply with the new ISP standards, which call to overlap Ground and Home Delivery routes.
Some existing route owners are acquiring additional routes and/or merging routes with other FedEx contractors to comply with new ISP standards. Instead of converting to the new model, other contractors are selling their routes now rather than later.
- FedEx Independent Service Provider Responsibilities
If you want to become an ISP Insurance Specialist, ISP contracts have some requirements, some of which you’ll negotiate with FedEx. However, many service provider responsibilities in the ISP contract won’t be negotiable. Some of them are:
- All Business Operations
An ISP must be incorporated under state law and responsible for all company activities, such as acquiring additional CSAs.
- Maintaining Vehicles
FedEx Independent Service Provider must own and maintain vehicles compliant with FedEx Ground standards, which includes requirements for vehicle maintenance, inspections, driver training, and insurance. You must also make sure your cars and drivers comply with all federal DOT regulations.
- Employment, Staffing, and Scheduling
ISPs are in charge of staffing and overseeing their group of employee-drivers by assigning and supervising work and recruiting and training people. In addition, you’ll need to figure out pay rates and benefits by state and federal legislation, as well as establish working hours, holidays, and vacations.
- Negotiating and Serving the Contracted Service Area
ISPs negotiate the conditions for their CSA and determine methods to best satisfy their CSA’s requirements.
Importance Of Finding FedEx Insurance Specialists
When becoming a FedEx IC or ISP, it’s important to find FedEx insurance specialists to help you navigate the process. They’ll guide you on what type of coverage you need and how to get it. Having the proper insurance is crucial for protecting your business and yourself.
Paradiso Insurance, Your FedEx Insurance Agency
Paradiso Insurance is a FedEx insurance specialist. We can help you get the proper coverage for every aspect of your business.
We work with many different carriers to find you competitive prices on FedEx insurance since not all insurers are created equal. There’s no challenge too big for us with our knowledge in the industry. Get an estimate today.