Why the FedEx Playbook matters for service providers
FedEx requires service providers to meet specific insurance and contract terms to move freight under their network. That means you, the agent, are a key advisor for clients who operate as drivers, route contractors, freight handlers, or last-mile partners. The playbook isn’t just a list of limits on a certificate, it’s a set of expectations around who carries what risk and how those transfers are documented.
A failure to line up policies and endorsements can leave your client exposed to denial of access, contract termination, or uncovered losses. Your job is to translate the playbook language into coverage that aligns with operations: which autos are insured, who signs hold harmless language, and whether cargo protection matches the exposures.
Core coverages FedEx expects to see
Here are the core pieces carriers typically list in service-provider insurance requirements. Exact terms vary by contract and region, so treat this as a checklist to compare against the playbook language.
Commercial General Liability (CGL)
CGL is the foundation for premises and operations liability. FedEx will usually ask for CGL limits and appropriate additional insured status. CGL is critical for third-party bodily injury and property damage that arise from your client’s premises or operations, but it has limits on auto-related exposures.
Commercial Auto (owned, hired, and non-owned)
Auto liability is often the most important line for last-mile and pickup/delivery operations. Confirm whether the client’s autos are scheduled on a commercial auto policy (business auto) and whether hired and non-owned auto (HNOA) is included. HNOA protects the business for liability arising from employee-owned vehicles used for work; the business auto form alone may not cover those vehicles.
Cargo / Motor Truck Cargo
Cargo insurance protects the goods in transit. There are several forms, named-peril vs. all-risk, legal liability vs. bailee’s liability, and the playbook will specify what type is required. Verify whether FedEx expects a motor truck cargo policy, carrier liability coverage, or specific limits per shipment.
Workers’ Compensation and Employers Liability
FedEx contracts generally require statutory workers’ comp for all employees, with an employers liability limit to match. Also confirm whether the playbook calls for indemnity and waiver of subrogation in favor of FedEx.
Umbrella / Excess Liability
Umbrella or excess layers are common where the playbook wants higher limits than the underlying policies provide. Make sure the umbrella drops down over auto and CGL exposures as required by the contract.
Endorsements and policy language to check
Coverage limits matter, but endorsements and how those endorsements are worded often determine whether the policy meets the playbook.
Additional insured endorsements
FedEx frequently asks to be named as an additional insured. Use the ISO additional insured forms (CG 20 series) or equivalent insurer wording that matches the contract’s scope (ongoing operations, products-completed operations, etc.). Confirm which occurrences and operations are covered by the endorsement.
Waiver of subrogation and primary/noncontributory language
Contracts often include waiver of subrogation and require the vendor’s policy to be primary and noncontributory. Ensure the insurer will issue those endorsements or equivalent wording and check for restrictions or conditions in the policy that could limit their effectiveness.
Contractual liability and hold harmless wording
Contractual liability in the CGL can be limited; some policies carve back contractual obligations. Review policy exclusions and be ready to discuss gap strategies (umbrella language, specific endorsements, or negotiated contract language changes) with your client.
Common coverage gaps for FedEx service providers
Understanding the frequent gaps helps avoid surprises during an audit or after a loss.
When CGL won’t respond for auto exposures
A common mistake is relying on CGL to cover auto-related claims. If an incident involves a vehicle, the commercial auto policy should be the lead. Confirm that hired and non-owned exposures are properly included and that employee-owned vehicle use is covered for business purposes.
Cargo vs. property damage to shippers
Cargo policies respond differently than general property coverage. For example, a cargo policy may have per-shipment limits or exclude certain types of goods. If FedEx requires a certain cargo wording, match that precisely.
Subcontractor exposures and certificate misuse
Clients often subcontract work but fail to get proper insurance from subcontractors. Certificates alone are not proof the coverage matches the policy wording; endorsements and actual policy language matter. Establish a subcontractor verification process.
Practical steps agents should take with clients
Follow a structured approach to help clients meet the playbook and reduce broker exposure.
Checklist for a FedEx playbook compliance review
1. Get the playbook or contract wording from the client.
2. Compare required coverages and limits to the insured’s policies and forms.
3. Verify endorsements: additional insured, waiver of subrogation, primary/noncontributory.
4. Confirm hired and non-owned auto is present if drivers use personal vehicles for work.
5. Review cargo wording and per-shipment limits against client operations.
6. Check subcontractor insurance and certificate wording.
7. Document any gaps and propose coverage changes or contract edits.
How to document and deliver evidence to the shipper
Use ACORD certificates for high-level evidence, but attach copies of required endorsements where the playbook asks for specific language. When the playbook requests signed forms or original endorsements, coordinate with the carrier to obtain insurer-issued endorsements rather than relying on certificate text alone.
A short checklist you can use today
1. Obtain the FedEx playbook or contract clause.
2. Pull the client’s declarations and endorsements for CGL, commercial auto, cargo, WC, and umbrella.
3. Confirm additional insured and waiver of subrogation endorsements are in place and match the playbook.
4. Verify hired and non-owned auto coverage for employee vehicles.
5. Confirm cargo limits and per-shipment wording.
6. Review subcontractor insurance and verification process.
7. Deliver required endorsements and certificates to the shipper and keep a dated audit trail.
Final notes
Operational detail drives coverage decisions. Read the playbook line-by-line with the insured’s policy forms and endorsements in hand. If the contract asks for language the insurer won’t issue, document efforts and propose contract edits or alternative risk transfer options. Paradiso Insurance can help translate playbook requirements into a clear placement strategy and a documentation plan. Reach out with the playbook language and policy forms so you can get the placement right for your client’s operation.
Caveat: Policy language and availability vary by carrier and jurisdiction. This is practical guidance, not legal advice.