The insurance section is the part of the contract nobody reads

Most operators sign a delivery contract on the strength of the rate and the route. The insurance section sits near the back, written in dense language, and it is the part almost nobody reads closely. It is also the part that decides what coverage you are legally on the hook to carry, and it is the first thing a client checks before they let you run.

What the section is really asking for

Strip away the language and a delivery insurance clause usually asks for a handful of specific things: named coverages such as commercial auto liability, general liability, cargo, and driver injury; a required limit for each; that the client be added as an additional insured; sometimes a waiver of subrogation; and often that your coverage be primary and non-contributory. Each of those is a real instruction to your policy, not a suggestion.

Where operators get caught

The gap I see most is a certificate of insurance that looks complete but misses one required endorsement. The limits are right, the coverages are listed, and yet the additional insured or the primary wording is not there. The client's compliance team bounces the certificate, the start date slips, and now you are scrambling to fix an endorsement under a deadline. The second gap is a required limit you cannot actually meet on your current program, which is a much bigger conversation to have the week before you start than the month before.

Read it before you sign, not after

My advice is simple. Before you sign, send me the insurance section. I read it against the coverage you already carry and tell you three things: what you have, what the contract requires, and what is missing. If there is a gap, we fix it while there is still time, not while the route sits idle. It takes a few minutes and it is the cheapest part of the whole deal.

This is general information about how insurance requirements in contracts work, not legal advice. Your specific obligations depend on the contract you sign and your own facts. Have a qualified attorney review any agreement before you rely on it.

Common questions

What is a certificate of insurance?

A certificate of insurance is a one-page proof that your policies exist, showing the coverages, limits, and effective dates. Clients ask for one to confirm you carry what the contract requires. It is a snapshot, not the policy itself, and any special wording a contract needs has to be backed by an actual endorsement.

What does additional insured mean on a delivery contract?

Additional insured means the client is added to your liability policy so it also protects them for claims arising from your work. Delivery and logistics contracts commonly require it. It has to be added by endorsement, so listing the client on a certificate without the endorsement behind it does not satisfy the requirement.

What insurance limits do delivery contracts usually require?

A one million dollar commercial auto liability limit is a common floor, with general liability often at one million per occurrence and two million aggregate, plus cargo and driver injury coverage. The exact numbers vary by client and program, so the signed contract governs. I read the insurance section and quote to its language rather than a rule of thumb.