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What Challenges Do Delivery Service Partners Face in Regard to Workers' Compensation?
Running a Delivery Service Partners (DSP) business comes with unique challenges, especially when navigating workers’ compensation. Unlike traditional businesses, DSPs often struggle to find flexible and affordable coverage options. Many insurance carriers classify delivery operations as high-risk due to frequent driving, heavy lifting, and fast-paced work environments. As a result, DSPs may face limited choices, high premiums, and strict underwriting requirements that make securing coverage a constant challenge.
In addition to the difficulty of obtaining affordable coverage, the nature of delivery work increases the risk of workplace injuries. Drivers and warehouse staff are exposed to hazards such as vehicle accidents, slip-and-fall incidents, and repetitive strain injuries. A single claim can lead to skyrocketing premiums, potential coverage cancellations, and financial strain on the business. Managing claims properly while ensuring compliance with state and federal regulations adds another layer of complexity that many DSPs aren’t equipped to handle on their own.
Without a strategic approach to workers’ compensation, DSPs may find themselves overpaying for insurance, dealing with costly claims, or struggling with administrative headaches. The combination of limited coverage options, high injury risks, and strict compliance requirements makes workers’ comp one of the biggest challenges for DSPs today.
When DSPs Look for Coverage They Often Report the Same Issues
Workers’ compensation insurance is one of the biggest challenges for Delivery Service Partners. Here’s why:
High (and Rising) Costs
Workers’ compensation costs are high and can quickly spiral out of control if not managed correctly.
Lack of Options
Companies don't have many places to turn in the marketplace to help them solve their workers' compensation challenges.
Poor Claims Management
A lack of options leads companies to overpay for subpar claims management, which ultimately pushes costs even higher.
Find Flexibility
Do you feel as if you are locked into a workers' comp system in which you are overpaying for subpar outcomes? You are not alone. That is because the
workers’ comp system is broken.
Be Proactive
The best way to control costs and reduce risk is to closely manage workers' comp claims and every other step in the process. This is what we do. We call it
Proactive Claims Management.
Control Costs
The key to controlling workers’ comp costs both in the short and long term is to work with a partner whose interests are aligned with yours.
Work with a partner who only wins when you win.
How Much Can Delivery Service Partners Expect To Pay for Workers' Compensation Coverage
The cost of workers’ compensation insurance for Delivery Service Partners (DSPs) can vary widely based on several factors, including the number of employees, payroll size, claim history, and the state in which you operate. Because the delivery industry is considered high-risk due to frequent driving, heavy lifting, and fast-paced work environments, many insurance carriers charge higher premiums.
One of the biggest challenges for DSPs is the unpredictability of workers’ comp costs. A single claim can cause premiums to spike, making budgeting difficult. At Alloy Employer Services, we help DSPs access competitive rates while ensuring cost stability through proactive claims management. By reducing risks, preventing claims, and handling compliance, we help delivery businesses keep workers’ compensation costs manageable and predictable—so you can focus on running a successful operation.
Don't get stuck with a workers' comp DSP partner whose interests are not aligned with yours.
We only succeed when YOU succeed.
As our customer, you are able to shift your risk. Alloy becomes responsible for all risk and is therefore proactive and watchful of all steps in the workers' comp process. The way we work, we only win when you win.
Proven Results
The average Alloy client saves over 20% on their workers' compensation premiums immediately after onboarding, and that's just the beginning!
Escape the Status Quo
Recent industry changes make it easy to ditch high fees and sub-par service for a true partner who's aligned with your goals.
, AMERICAN EMS, LLC
Get a Free Workers' Comp Quote
Get an absolutely free, no-obligation analysis of your company’s Workers’ Compensation program including rates and claims management performance.