- By Ami Miller
- January 15, 2026
Have you ever wondered what underwriters are looking at when making decisions about your business’s insurability? An underwriter’s job is to evaluate characteristics of the overall risk associated with your last mile delivery operation. They determine program acceptability and the appropriate premium and coverage limits for your business – which is often complex and has unique operational needs. For underwriters, the data you provide tells the story of your business’s risk profile. Let’s break down these factors for a better understanding of how to make your business a favorable risk in the eyes of an underwriter!
1. Mileage and Trips
Underwriters analyze the number of miles driven, trips made, and lanes of travel, as those directly impact the likelihood of accidents. The number of miles driven can indicate exposure to potential wear and tear on your vehicle. Changes to typical mileage could indicate load seasonality or business expansion, requiring underwriters to review and perhaps reassess coverage. Also considered is travel within a metropolitan area, congested areas and the average radius of operation, as stop-and-go urban deliveries have higher accident rates than highway miles.2. Revenue
Revenue generated can be an indicator of business size and profitability. Underwriters use financial data to determine your operation’s overall financial health and stability. Underwriters want to ensure your organization has the financial strength to afford costs associated with running the business effectively. Additionally, revenue reports are used to determine the revenue generated per vehicle. This allows underwriters to understand vehicle utilization and identify the proper rate for the areas in which you operate.3. Safety Protocols
Your company’s safety procedures, including driver hiring and training, and vehicle maintenance schedules are crucial for assessing risks associated with your operation. Loss history (amount of loss, driver involved and cause of loss) and DOT inspection data are also reviewed. Businesses with minimal losses and inspection violations demonstrate a commitment to maintaining a safety culture within their operations. These operations pose a lower risk to insurance companies, making them more desirable.4. Operational Management
Underwriters use this information to get a picture of how well your operation is managed. Established businesses with experienced management, consistent payment history, dedicated routes, good driver retention and strong shipper relationships are more attractive to underwriters. Common insurance claims filed against last mile delivery operations are centered around loading and unloading. Underwriters will also review management controls, such as enforced safety protocols, required training and hiring standards for full or part-time helpers hired to assist with loading, unloading and installation.5. Driver Behavior
Last, but certainly not least, the drivers you select are the most important indicator of how an account will perform. The quality of the drivers you employ (years of experience and history of violations) and the length of time quality drivers are retained, reflect an operation’s hiring practices and level of focus on safety. Underwriters prefer businesses with experienced drivers without accidents or major safety violations. In addition to these five risk factors, underwriters may ask more questions and require documentation to back up your answers. The data you provide (Application, Profit and Loss Statements, Loss Runs, etc.), your performance on the road (public DOT data and loss experience), and how you manage the business (driver quality and retention, payment history, safety protocols) all play a part in telling the story of your business’s risk profile. With careful attention paid to all key factors discussed, yours could be the story of a best-in-class risk!