Falvey Cargo Updates

What Is A Stock Throughput?

Posted: March 13, 2018 in:


In the past, you’ve purchased multiple insurance policies to protect your goods throughout the many phases of the product life cycle. You’ve relied on separate transit and property policies, but did you know that you could easily purchase one piece of comprehensive coverage instead?

Multiple policies can often lead to multiple problems. That’s why stock throughput policies are the best choice when you’re looking for insurance to comprehensively cover your goods during the entirety of the supply chain . By purchasing one effective stock throughput policy, you’re ensuring that your goods are covered from the time they are purchased as raw materials until they arrive at their final destination.

The stock throughput difference

If your company is regularly importing, exporting, manufacturing, assembling, or distributing goods, you need a stock throughput policy. This specific type of all-inclusive coverage insures all inventory, including raw materials, semi-finished or work in process, and finished goods. A stock throughput policy is used to insure items from the time they are shipped, manufactured, processed, stored as inventory, and eventually delivered to their final destination, be it a storage facility or customer’s location.

This insurance may offer broader coverage than a traditional property policy or standalone cargo policy, as it covers your goods through the full extent of the supply chain cycle and accounts for any potential gaps in coverage. What’s more, in the event that a claim does occur, having a valid stock throughput policy means that there’s no question as to whether the property insurer or cargo insurer is responsible for paying for the loss. This means that there’s no finger pointing when a claims occur, making the claims process and subsequent handling of claims a more seamless experience.  

Many property policies exclude or provide limited coverage for goods, especially outside of the United States of America,  in the event that they’re damaged by natural disasters but stock throughput policies understand that the goods are constantly moving through the supply chain and typically insure these perils. Additionally, stock throughput policies may reduce the need for you to purchase insurance locally when dealing with business abroad, as your comprehensive coverage accounts for international shipping and handling in the shipping life cycle.

Benefits of stock throughput policies

  •      Lower deductibles
  •      Lower premiums
  •      No time limitations
  •      Selling price valuation for finished goods
  •      Natural disaster and international coverage   
  •      Comprehensive coverage with no gaps

Make your coverage count by purchasing a stock throughput insurance policy. Once your insurance needs are taken care of, you can continue doing what you do best – running your business.



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