By Roderick James, Socius Insurance Services

This underutilized coverage has actually been around since the 1970’s as a spin-o of the Manufacturers Output policies which were very popular in those times. Stock Throughput is classied as a Marine coverage, so Property brokers focused on Property markets may be unfamiliar with this product’s oerings or simply believe the coverage is only Marine. Stock Throughput is much more than just marine coverage and in these times of increased competition this product can be what keeps your account competitively priced. Here is a quick overview.

What is Stock Throughput?

Stock Throughput policies provide cover for all moveable goods (inventory) that are the subject of the insured’s trade. This includes raw materials, semi-nished, and nished products. The goods are covered at all times whether in transit, undergoing process, or in storage at owned or non-owned third party premises. Coverage conditions are usually written on an “all-risk” basis for transit and storage, and coverage Worldwide. Damage to your goods cause directly by the manufacturing process in excluded.

Traditionally Manufacturers or Distributors might have several dierent policies covering their stock and transit exposures, ranging from an ocean marine policy to a stock policy to a separate policy for inland distribution. These policies are often written with dierent carriers. Where one policy stops and another policy begins there is a great chance for either an overlap or gap in coverage. This duplication or gap in coverage can cause major issues in the event of a loss, especially when dierent carriers are involved. Under a Stock Throughput policy all transit and stock exposures are covered under a single seamless policy with one carrier which eliminates multiple policies and gaps or duplication of coverage.

What are the benefits of a Stock Throughput policy?

1. All-risk, no-gap coverage
   1. Goods can be covered from the moment the insured assumes an interest in those goods to the moment that interest ceases, even if the goods in question are in the hands of a third party.
2. Lower Premiums
   1. The marine cargo insurance market can provide substantially lower rates than traditional property markets, thus enabling considerable savings
3. Lower Deductibles
   1. The marine cargo markets allow for lower deductibles for CAT (e.g. hurricane, wind, earthquake and flood) and non-CAT risks, and a fixed rather than percentage deductible can apply.
4. Selling Price Valuation
   1. Stock can be values on selling price, thereby including the prot element and potentially reducing the need for business interruption coverage.
5. No time limitations
   1. Coverage continuous on the goods in transit and storage as long as the insured is at risk. Also declaration as typically not required. 

Target clients for Stock Throughput?

Stock Throughput insurance benets both domestic and international risks. With minimum premiums starting at $10,000, this coverage can benet businesses small to large. Target clients include:

• Automotive parts manufacturers and distributors.
• Agriculture growers and distributors.
• Fish, meat, and poultry importers, exporters, and distributors.
• High-tech and Bio-Tech risks with high-value electronic equipment.
• Textile and other tangible goods manufacturers and distributors.
• Food and beverage processors and grocery distributors.
• Retailers and others with goods in transit and storage.
• Importers and Exporters.
• Any buyer of insurance for marine and/or goods in transit and stock/inventory exposures

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