Commercial Liability Insurance for
Independent Route Owners

Independent Route owners require two types of insurance policies in order to be compliant with their distribution contracts with the brands they represent.

  • Commercial Auto covers the vehicle used to deliver the product.
  • General Liability protects you from liability while you are packing out in the store.

Inland Marine coverage is an important part of the General Liability, covering the cargo you carry, as well as your handheld computer and printer.


Rev. Jim J., Snyder Lance - York, SC

IDA meets all of our needs as IBOs. They have a plan in place to help you. Setting us up can be a lot of legwork, but they have all their ducks in a row.

What Is Commercial Liability Insurance?

General liability insurance protects you from financial loss when a customer sues for negligence, including suits brought when a customer slips and falls in the store and claims due to distributor negligence.

General liability insurance also includes your responsibility to provide an attorney to represent the company in court, and to pay the claim if necessary.

Christina U., Peets and Voortman - Richmond, CA

It’s so nice to work with a company that caters to the independent distributor. IDA customer service is awesome and everyone is helpful and attentive. With the amount of coverage we now have – plus the amount we’re going to save – it’s great!

Why Does an Independent Route Owner Need Inland Marine Coverage?

Inland marine insurance is insurance that covers cargo while in transit, along with optional hand-held computer coverage.

This type of insurance is typically purchased as a supplement to an existing insurance policy.

The origins inland marine policies supposedly originated with Lloyd’s of London, a respected insurance provider during the 17th Century.

Lloyd’s initially insured ship cargo, holding policyholders responsible for whatever happened to their goods on land.

Eventually, coverage expanded to include cargo after it had been offloaded, with inland marine insurance covering cargo in transit, storage, or holding, providing better coverage to policyholders.

Today, inland marine insurance is often used by people who are nowhere near the ocean and do not intend to transport anything by ship.

 Justin W. -  Rowlett, TX

When buying a new route and all that comes with it, IDA makes it easier for me to manage expenses and know what is going to happen. I wouldn’t go anywhere else.

Why do Independent Route Owners need professional liability insurance?

A service delay, disagreement over a payment, or other client complaint could lead to legal action against your company.

Small businesses that provide professional services or give advice to clients should consider purchasing professional liability insurance.

It provides protection when a business owner is sued for negligence because their work doesn’t meet a client’s expectations.

Professional liability insurance can often be required by a small business’ clients when entering into a contract.

Tom M., Gulf Coast Master Wholesaler - Jefferson City, MO

If you are an IO you have to treat like a business, not just getting a paycheck from an employer. That’s one of the reasons we like IDA and their all-in-one solution. They have it all under one roof.

What Are the Types of Commercial Liability Insurance Coverages for Route Delivery Drivers?

  • Professional liability insurance offers a variety of coverage for small businesses.
  • Alleged or actual negligence – Protects a business against actual or alleged errors and omissions when providing professional services, such as giving incorrect advice, an omission, or failing to deliver a service.
  • Defense costs – Provides legal defense when a covered claim is reported.
  • Personal injury (e.g., libel or slander) – Can provide protection for small businesses against both libel and slander if it’s committed as part of your professional services.
  • Copyright infringement – Can provide coverage for damages or claims expenses for copyright infringement.
  • Professional liability insurance can also offer coverage for claims from services provided in the past and work performed anywhere in the world.