Stock throughput (STP) policies are designed for companies that import, distribute, or export merchandise. The policy provides coverage for all inventory, covered at all times whether in transit, undergoing process, or in storage at owned or third-party premises.
What is a Stock Throughput Policy?
It’s a marine policy that insures a company’s inventory and the stream of goods from the source of production to its final destination. It has three components;
- Ocean cargo insurance
- Inland transit
“All risks” are covered throughout, customized to the particular needs of each client. Other benefits include the inclusion of cargo capacity for catastrophe risks such as earthquake and windstorm, offering more appropriate deductibles than provided by property markets.
Benefits of a Stock Throughput Policy
Most businesses that have an inventory insure it under a Commercial Property policy, and then have a separate policy for the shipment and transportation of the goods. With a Stock Throughput Policy, the warehoused inventory is insured through the marine cargo policy instead of the property policy.
The first benefit is the reduction of the property premium when the inventory values are deducted from the property insurance program. In addition to being a more affordable way to insure inventory, an STP may also offer the following benefits as compared to a property insurance program:
- A marine cargo deductible is often much lower than a property insurance deductible.
- An STP typically includes coverage for flood, earthquake, and windstorm
- Settlement and payment of STP claims is often easier and faster than settlement and payment of property claims.
Why We’re Different
You may think you want the cheapest insurance you can find, but realize you may not be getting everything you bargained for…
While most insurance products are similar in price and function, insurance providers are very different when it comes to structuring a policy that actually covers you.
There’s no such thing as a one-size-fits-all insurance policy when it comes to your business.
We’re your neighbors. We protect businesses and people we know and care about, and that means we always look for ways to protect you better, including carefully choosing the insurance companies we represent to be both affordable and responsive.
Contact us and let the professionals at our company help you forge the strongest shield possible to help you protect the things you are working hard to build.