What Policies Should Be Used for Delivery Fleet With Various Ownership Structures?

• By: The Big "I" Virtual University
• October 30, 2026

An insured based in Pennsylvania has a fleet of small vans performing small package delivery through load boards across the U.S. The insured recruits nationwide and its drivers are independent contractors who have the flexibility to accept or decline loads and choose their routes. Because they can be on the road for weeks at a time, they do not garage vehicles at a single local home ZIP code.

Q: The current carrier is canceling the policy due to vehicles not being garaged in the state. How should this risk be insured? The insured needs a policy to cover vehicles under various ownership structures, including company-owned vehicles, driver-owned vehicles and leased vehicles from third-party companies.

Response 1: A great deal more information is required, but before you start gathering it, you need to find a carrier, either in your stable or through one of your excess & surplus contacts. If you can find an interested underwriter, you need to gather a detailed description of the current drivers and vehicles. 

Although the vehicles may not stay at a fixed location overnight, they have to be based somewhere. I’d begin with the address used for licensing. You’ll need copies of the contracts used, a description of the goods carried and the various routes. The underwriter may want more data, and you’ll have to work with them. 

The resulting coverage will need to protect your client from direct liability for these operations—both auto and general liability—the entire range of liability assumed by contract, the insurance requirements of various states and liability for injury to employees, both currently identified employees and independent contractors who decide later to demand employee status. 

The operation as described is a tall order to insure, and it sounds terribly changeable. That raises the possibility of new exposures that you haven’t dreamed of. This operation sounds like a way to make a lot of money for your agency—and a way to create a huge errors & omissions claim.

Response 2: The folks driving should look for a truckers policy, cargo policy, trucker expert form for compliance, bill of lading to know the load and responsibilities, a lawyer to interpret contracts and an accountant for the books and carrier audits. The same goes for the main hiring company.

This should be placed only with a carrier licensed in all states of operation. The underwriter should request, and the insured should be ready to provide, certifications from all the 1099 entities. 

Any owned vehicles should be rated per their garaging states. An audit will return premium for entities with certifications that match or exceed your insured’s limits.

Response 3: This is a pure hired auto exposure. You should use the ISO Motor Carrier Coverage Form CA 00 20.

This question was originally submitted by an agent through the Big “I” Virtual University’s (VU) Ask an Expert service, with responses curated from multiple VU faculty members. Answers to other coverage questions are available on the VU website. If you need help accessing the website, request login information.

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