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.
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.
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:
Stock Throughput insurance can become complex as coverage for stock, cargo and marine are being combined under one cover. Also there are exclusions, terms and conditions to take into consideration when tailoring a Stock Throughput for a particular risk. Partnering with a brokerage that has a specialty in both property and marine, like Socius, will greatly simplify this process. Socius has over 18 years’ experience working with our retail agents tailoring Stock Throughput policies for a large variety of industries.