An introduction to stock throughput
Who arranges the insurance. Buyer or seller?
Rather than purchasing multiple policies, your clients only need to purchase one;
Stock throughput (STP) policies combine transportation and storage risks.
They can cover
- raw materials,
- works in progress and
- finished goods
more about stock throughput policies
Stock throughput policies cover risks from the source of production, during manufacture or processing (but excluding damage caused by the manufacturing process), packing, storage including goods held by subcontractors and distribution through to the point that the goods reach their final destination.
Rather than having several policies with different premiums, deductibles and insurers, STP offers a single, seamless policy which eliminates any gaps in cover, for example the risks of loading and offloading from transport to warehouse.
You control which exposures you would like covered and the basis of valuation required based on your individual circumstances. The result is a bespoke policy tailored to your clients specific needs.
saving your client time
There are no shipment or location reporting requirements, which saves you and your client time. In addition, we can base the premium on a single rate applied to sales turnover.
Third party stock location
We can insure stock at third party locations which are held for storage or processing that the non-marine market may not cover.
Purchasing a single policy rather than having cover over several can reduce premium spending.
Lower deductible level
Stock deductibles are generally lower under a STP cover.
A simpler claims experience
With one policy rather than several, STP provides a streamlined claims settlement