Stock Throughput Insurance

In 2025, the U.S. imported more than $4.334 trillion, a 4.8% increase from the previous year. With this growing volume of goods moving through global supply chains, companies face greater exposure to loss—whether during transit or in storage.

Unlocking the potential benefits of a stock throughput policy can redefine the way manufacturers secure their inventory along the complex supply chain. In this blog, we delve into the essence of an stock throughput policy, a distinctive insurance approach where warehoused inventory finds protection through a marine cargo policy rather than a traditional property policy.

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What Is a Stock Throughput Insurance Policy?

Stock throughput insurance is coverage designed to protect stock and inventory as it moves through the supply chain, including during production, transit and storage.

In typical insurance programs, many manufacturers insure their buildings, machinery, equipment and warehoused inventory under a property insurance policy and also insure the shipment and transportation of their product under a marine cargo policy. With a stock throughput policy, the warehoused inventory is insured through the marine cargo policy instead of the property policy.

The stock throughput policy covers physical loss or damage to all stock and inventory at risk of loss. This can include raw materials, semi-processed goods, or finished products. Starting from production and throughout the supply chain, a stock throughput policy covers your goods whether in transit or at a storage warehouse.

There are a number of reasons why a stock throughput policy may be right for your risk.

Why Is a Stock Throughput Policy Important?

The journey of materials along the supply chain comes with great uncertainty. Economic instability, war risks, and natural catastrophes are just some of the obstacles that companies can face while shipping and storing their goods. Companies should consider taking action to maintain as much control as they can throughout the transit process.

With an stock throughput policy, insureds are given broadened protection against these cases and are provided worldwide coverage for goods warehoused and in transit. The policy provides continuous end-to-end coverage that fills any gray area that separate policies may have as the goods are exchanged. This would also avoid conflict between carriers and will reduce the cost of having multiple policies.

Benefits of a Stock Throughput Policy

There are several potential benefits to insuring inventory through an stock throughput 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 stock throughput policy 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.
• There are no time limitations. Coverage continues as long as the insured has risk, regardless of whether the goods are in transit or in storage.
• An stock throughput policy may offer broader limits for catastrophic perils, such as earthquakes, floods, and windstorms, and at lower marine cargo rates. Additionally, claims involving catastrophic perils do not erode available limits for the property program.
• Settlement and payment of stock throughput policy claims are often easier and faster than the property claims process.
• The stock throughput policy will provide broader coverage and greater insurable capacity.

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How Does Stock Throughput Insurance Work?

A stock throughput policy can cover physical loss or damage to stock and inventory while goods are in the insured’s care, custody or control, depending on the policy terms. This may include raw materials, semi-processed goods and finished products.

The goal is to create end-to-end inventory coverage across the supply chain. Instead of separating coverage between property insurance for warehoused goods and marine cargo insurance for goods in transit, a stock throughput policy may cover inventory across both storage and transit exposures.

This can be especially useful when goods move through:

• Manufacturing facilities
• Third-party warehouses
  
• Distribution centers
• Ports and terminals
• Domestic or international transit
• Temporary storage locations
• Multiple carriers or logistics providers

Because stock throughput coverage is tied closely to marine cargo insurance, companies should review it as part of their broader marine insurance and supply chain risk strategy.

Who May Need Stock Throughput Insurance?

An stock throughput policy could assist in covering a variety of different industries. It is most convenient for companies that do a great deal of distributing and shipping goods domestically or internationally. Common industries that benefit from having a stock throughput policy include auto, food and beverage, pharmaceutical, retail and e-commerce industries.

For proper evaluation, a comparison of available coverage, deductible and costs associated with insuring stock and inventory must be made between the property insurance program and an stock throughput policy:

• Are available limits, including catastrophic coverages, as comprehensive, or better, in an stock throughput policy?
• Is the applicable deductible for loss to stock and inventory lower in an stock throughput policy?
• Is the premium credit for extricating stock values from the property program approximately, or greater than, the additional premium to cover the stock in an stock throughput policy?

Depending on the answers to these questions, a stock throughput policy may be right for you

In today’s global economy, the demand for the comprehensive coverage that stock throughput insurance offers is growing. If you would like help reviewing your insurance coverage or assessing your risks, connect with us today to learn more about how Hylant's marine specialty can help you navigate the world of marine insurance.

The above information does not constitute advice. Always contact your insurance broker or trusted advisor for insurance-related questions.