Stock Throughput Insurance
Stock Throughput Insurance covers your goods all the way through production and to the final destination. It cover’s different modes of transportation (ocean, air, inland) in addition to storage and periods in warehouses at each production stage, whether owned by you or by third parties.
Do you need Stock Throughput Insurance?
Stock Throughput Insurance provides “cradle to grave” coverage—meaning as soon as you’ve assumed an interest in stock, coverage is in place until your risk and/or interest in the product ceases. Stock-Throughput Insurance provides coverage for the following stages of the product life cycle:
From the time that the raw material is sourced, through the assembly and work-in-progress phases.
During any storage periods, at any stage of the operation.
While in transit, whether shipped domestically or internationally.
In some cases, after final delivery, if a financial interest is evident.
The following businesses would be prime candidates for this type of coverage:
However any type of business can utilize Stock Throughput Insurance.
Stock Throughput Insurance has three components:
- Ocean cargo insurance.
- Inland transit insurance.
- Property or storage insurance.
The above components of coverage provide protection for inventory on the move, including raw materials, semi-finished, and finished products, are covered at all times whether in transit, undergoing process, or in storage at owned or third-party premises.
A stock-throughput policy provides more comprehensive coverage than a Business Property Insurance or Inland Marine Insurance policy. For example, the stock-throughput policy covers the following catastrophe exposures which are often excluded under a traditional Business Property form:
A Stock-Throughput policy would be aligned with your Business Property policy. In case of a catastrophic loss, the Business Property policy would respond to damaged buildings and the Stock Throughput policy would respond to loss or damage to property and stock.
Reach out to me if you’re considering Stock Throughput Insurance. I will discuss with you how it works and assess if it fits into your risk management needs. If you determine this coverage is needed I will then provide you with comparative Stock Throughput Insurance quotes from multiple insurance carriers so you can get the best possible rate.
As an insurance broker I help businesses throughout Oregon and the Pacific Northwest manage risk.