What Is Amazon's DSP Program?
Amazon does not directly employ most of the drivers making residential deliveries in your neighborhood. Instead, the company contracts with thousands of small businesses called Delivery Service Partners (DSPs). Amazon launched the DSP program in 2018 as a way to scale last-mile delivery while offloading employment costs and, critics argue, legal liability.
On paper, a DSP is an independent company. In practice, the relationship looks very different. DSP drivers wear Amazon-branded uniforms, drive Amazon-branded vans, follow routes assigned entirely by Amazon's software, and are monitored in real time through Amazon's driver tracking technology. Amazon sets hiring criteria, driving standards, and can terminate DSP contracts — effectively removing drivers — for performance violations. That level of operational control is exactly what courts examine when deciding whether Amazon shares liability for a crash.
Amazon's Control Over DSP Drivers
The independent contractor defense is Amazon's primary argument when a DSP driver causes a crash. But that defense has been failing in court because the evidence repeatedly shows how deeply Amazon controls its DSP network:
- Branded vans and uniforms — Drivers wear Amazon gear and operate vehicles with Amazon logos, leased through Amazon-approved third parties
- Route assignment — Amazon's software assigns every package and every stop. DSP drivers do not choose their own routes
- Real-time monitoring — Amazon's Mentor and Netradyne camera systems track speed, hard braking, cornering, and distracted driving on every shift
- Hiring standards — Amazon sets background check and driving record requirements that DSPs must follow
- Off-boarding power — Amazon can require a DSP to remove specific drivers, giving it functional firing authority
- Performance metrics — DSPs receive daily scorecards grading driver behavior against Amazon benchmarks
In Shaw v. Amazon, a South Carolina jury awarded $44.6 million after finding Amazon vicariously liable for a DSP driver who had logged more than 90 recorded distracted driving incidents in Amazon's own system before the crash. The jury found Amazon grossly negligent in retaining that driver despite its own data flagging him as dangerous.
Who Can Be Held Liable After a DSP Accident
In most DSP crashes, at least three parties are potentially responsible:
- The DSP Driver The individual behind the wheel is always a potential defendant. Standard negligence — speeding, distracted driving, failure to yield — applies regardless of who employs them.
- The DSP Company The small business that employs the driver is responsible under respondeat superior (employer liability) for negligent acts committed during the scope of employment. DSPs are required to carry commercial auto coverage.
- Amazon Logistics Amazon can be held liable as a principal in an agency relationship when it exercises sufficient control over driver conduct. Courts have also found Amazon negligent for failing to act on its own safety data — the same driver monitoring that Amazon uses to enforce performance standards becomes evidence of notice when violations go unaddressed.
The Insurance Coverage Stack in DSP Accidents
DSP companies are required to maintain a minimum of $1,000,000 in commercial auto liability coverage for their delivery fleets. If Amazon is also named as a defendant and found liable, additional coverage layers — including Amazon's own corporate insurance — may come into play. Reaching those deeper layers is one reason having an attorney matters in these cases.
Insurance Coverage for DSP Vans in Kentucky
Understanding the insurance structure is critical to recovering full compensation after a DSP accident. Here is how the coverage tiers typically work:
| Coverage Tier | Who Provides It | Minimum Limit |
|---|---|---|
| DSP Commercial Auto (Primary) | The DSP company's insurer | $1,000,000 per occurrence |
| Amazon Corporate Coverage | Amazon Logistics insurer (if Amazon held liable) | Excess/umbrella layers |
| FMCSA Minimum (vehicles over 10,001 lbs) | Required by 49 CFR § 387.9 | $750,000 non-hazardous cargo |
| Your UM/UIM Coverage | Your own auto policy | Per your policy limits |
Kentucky KRS 304.39-080 requires all vehicles registered in Kentucky to carry minimum liability coverage. For commercial delivery vehicles, those minimums are superseded by federal FMCSA requirements when the vehicle crosses state lines or weighs over 10,001 pounds — which most DSP vans do.
What Damages Can You Recover?
Kentucky is a choice no-fault state, meaning you can choose to reject no-fault coverage and preserve your right to sue. If you were hit by a DSP van and suffered serious injuries, you may be entitled to recover:
- All medical bills — past and future
- Lost wages and reduced earning capacity
- Pain and suffering, mental anguish
- Permanent scarring, disfigurement, disability
- Punitive damages when Amazon's negligence was reckless (such as ignoring its own driver safety data)
Punitive damages can dramatically increase the total recovery. In the Shaw case, $30 million of the $44.6 million award came from punitive damages — a direct response to Amazon's failure to act on 90 documented distracted driving violations.
Steps to Take After a DSP Van Accident in Kentucky
What you do in the hours and days after a DSP crash can significantly affect your case. Digital evidence — app logs, delivery records, and driver monitoring data — is time-sensitive and can be deleted.
- Call 911 and get a police report filed at the scene
- Photograph the van, the Amazon branding, and the license plate
- Get the driver's name, DSP company name, and insurance information
- Seek medical treatment immediately — even if you feel okay
- Do not give recorded statements to Amazon's insurance carrier
- Contact an attorney before speaking with adjusters — preservation letters for Amazon's driver monitoring data must be sent quickly