Why Insurance Alone Won’t Protect Your DSP

And… What Should You Do Instead?

Running an Amazon Delivery Service Partner (DSP) business comes with significant risks. From vehicle collisions to workplace injuries, every incident can lead to costly claims, rising insurance premiums, and potential business disruptions. Many DSPs assume that as long as they have insurance, they’re covered—but that’s a dangerous misconception.

Insurance is reactive. It steps in after an accident has already happened. But by then, the damage is done. If DSPs want to safeguard their business, they need a proactive approach that goes beyond just carrying a policy.

The False Sense of Security

Insurance is essential, but it’s not a solution—it’s a financial tool to cover losses. The problem? The more you use it, the more expensive and limited it becomes. High claim frequency can lead to:

• Rising Premiums – More claims mean higher rates, cutting deep into margins.

• Increased Deductibles – Insurers may shift more financial burden onto you.

• Coverage Restrictions – Too many claims? You could face policy limitations or even non-renewal.

Simply put, relying on insurance alone puts your business at risk. A single bad year could make future coverage unaffordable or unavailable.

The Real Cost of an Incident

The financial impact of an accident goes far beyond the insurance claim itself. Every incident carries hidden costs, such as:

• Vehicle Downtime – A damaged van means lost revenue and missed deliveries.

• Legal and Compliance Issues – Accidents can lead to lawsuits, regulatory fines, and compliance challenges.

• Reputation Damage – A track record of safety incidents can impact DSP standing with Amazon.

• Operational Disruptions – Accidents create management headaches, from handling claims to replacing drivers.

These costs aren’t covered by insurance. They come straight out of your bottom line.

Risk Management: Your First Line of Defense

The best way to control costs and protect your business is to prevent claims before they happen. This requires a proactive risk management strategy, which includes:

• Driver Training & Coaching – Regular safety training reduces risky behaviors behind the wheel.

• Telematics & Monitoring – Tracking speed, braking, and distractions helps identify and correct unsafe driving habits.

• Incident Investigations – Analyzing near-misses and minor accidents can prevent major ones.

• Clear Safety Policies – Setting expectations and enforcing accountability ensures compliance at all levels.

By actively reducing risk, DSPs can lower claim frequency, maintain affordable insurance, and build a safer, more sustainable operation.

Building a Safety-First Culture

Risk management isn’t just about tools and policies—it’s about mindset. A true safety-first culture means every driver, dispatcher, and manager is invested in preventing accidents. This includes:

• Reinforcing safe behaviors daily.

• Recognizing and rewarding safety-conscious drivers.

• Holding teams accountable for unsafe actions.

• Regularly reviewing safety data to improve performance.

When safety becomes part of the company’s DNA, fewer accidents happen—and everyone benefits.

The Gryphon Advantage

At Gryphon, we help DSPs take control of their safety, risk, and insurance costs. Our proactive approach ensures that insurance is a last resort—not the only plan. With the right risk management strategies in place, DSPs can:

• Reduce accidents and claims.

• Maintain affordable insurance coverage.

• Protect their drivers, vehicles, and bottom line.

Insurance is necessary, but it’s not enough. The key to long-term success is owning your risk—and Gryphon is here to help.

Remember, take control of your risk and be the guardian of your business longevity!