Overview of the Last-Mile Delivery Services Industry

Modern society thrives on having their demands met as quickly and efficiently as possible. As a result, the last-mile delivery service industry is booming. Whether it’s a fresh load of laundry, medical supplies, or a warm meal, this market will deliver — literally.

This industry was born from a two-fold need: finding the appropriate services and getting it to the doorstep. Last-mile delivery services offer innovative solutions by challenging current business models. Investors haven’t turned a blind eye to this opportunity, either.

Whether it’s a team that services the last mile delivery operations for the likes of Amazon, focuses on lost luggage return from an airport, or a company that simply wants to support their local community, it’s crucial to ensure the proper insurance coverage is structured for your unique business.

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Some of the biggest risks Delivery Services companies face


Anytime a company uses vehicles to fulfill a service, the risk of injuring others is a significant threat. Perhaps a delivery driver collides with another vehicle while en-route to a customer and the crash hurts individuals in the other car. Maybe a bike courier loses control while navigating a freshly-paved road, resulting in broken bones and bruising. That said, bodily injury is a top concern for last-mile delivery service companies.

Property Damage

Along with injuries, on-demand services are always concerned that their employees or contractors will damage property. Third-party lawsuits pop up all the time because a professional service employee damaged this or that.

Consider a vehicle leaking oil on a customer’s driveway. More catastrophic accidents aren’t out of the question, either. Recently, a delivery driver plowed into a self-storage building while experiencing a medical issue. Last-mile delivery service companies take into account even the most bizarre hypotheticals.


With the average worldwide cost of a data breach at $4 million, it’s no surprise that on-demand companies consider cybersecurity a top priority. What’s more, last-mile delivery services use apps regularly. Suppose a cybercriminal hacked into your network, causing massive technical issues for your customer base. This crisis could put a devastating halt on your business, causing loss of income and financial damage to your company.

Why is Last-Mile Delivery Insurance Important?

Consider how you meet your customer’s expectations or how you structure your business. Hiring and onboarding new drivers shouldn’t fly under the radar, either. These are all vital parts of this market — and make insurance all the more vital.

Ensuring longevity in the industry isn’t about luck or finger-crossing. More than anything, it’s about establishing a robust risk management plan to keep your on-demand company in the game for the long haul. Having the appropriate insurance coverage on your side helps to ensure that your on-demand business isn’t delayed by pesky lawsuits, regulator fines, or an array of other issues that might surface.

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What Insurance do Last-Mile Delivery companies need?

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How much does Insurance for Delivery Companies cost?

A number of factors come in to play when underwriters assess risk for last-mile delivery insurance. For essential policies like General Liability and HNOA, underwriters will examine:

  • Mileage driven
  • Trips provided
  • Revenue generated
  • Safety protocols and processes

Your premium will depend largely on the scale of your operations and growth rate among other factors like:

  • Exposures: risks being insured.
  • Company practices: views on safety, compliance, and risk management.
  • Program structure: the amount of deductible and willingness for a company to assume more risk
  • Claims history: the type and amount of past claims against the company

Delivery Service Companies that need insurance

Although the on-demand food delivery service industry is booming nowadays, plenty more delivery services are also doing well for themselves, such as:

  • Courier services
  • Transportation
  • Logistics
  • Catering
  • Cleaning services
  • Laundry service
  • Home care services
  • Medical supplies
  • Healthcare services
  • Home repair applications
  • Pet care services
  • Flowers and gifts
  • Car rental services

On-Demand & Delivery Companies We Work With

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