Stock Throughput (STP) policies aren’t new—they’ve been around since the 1970s—but in recent years they’ve become a more affordable way to simplify and expand coverage for organizations that have complex inventory and transit property exposure. 

Many companies insure goods at fixed points in the supply chain—at specific locations or while moving overseas and upon land—using separate property and cargo insurance policies. That approach can leave gaps during transit, storage, processing, or while goods are held by third parties. 

A stock throughput policy removes those gaps in coverage by providing continuous coverage for physical loss or damage to goods in transit wherever they are—even while they’re being held by a third party or in a different country.  

Wholesale, retail, and food and beverage industries have historically benefited the most from STPs, but with new players on the scene and a more competitive landscape, any industry sector with significant inventory and transit exposure can benefit. Here’s why.  

Rather than having separate policies that don’t go quite everywhere your inventory does, an STP provides one policy that keeps you covered while your goods are on the move—even if those goods are works in progress rather than finished products.  

An STP also simplifies the claims process. Because you’re covered by one policy, there’s one way to handle loss. You won’t need to determine (and prove) whether your loss falls under the property or cargo policy.  

STP policies typically provide a lower, flat-dollar deductible than a typical property market deductible. That’s a strong start. You’ll also pay a lower deductible for natural catastrophe coverage compared to property markets.  

Even if you’re doing business in an earthquake or windstorm zone, your deductible for an STP is still going to be low, and you’ll have significant catastrophic (CAT) coverage in general, protecting your goods from perils many property policies limit.   

One of the most strategic advantages of an STP is the way it reshapes your broader commercial property insurance program, not just your inventory coverage. Adding an STP can introduce greater catastrophe capacity and flexibility alongside your property policy, improving overall risk management and placement options: 

As long as you have a financial interest in protected goods when a loss occurs, you’re insured—no matter the terms of sale or stage of the sales cycle.  

An STP allows for agreed value settlements, so claims for unsold goods and raw materials are covered at selling price and replacement cost, respectively. Extending coverage to unfinished goods helps you reduce business interruption costs.  

Did I mention you may be able to save on your insurance premiums and total cost of risk? 

Cost certainly matters—particularly when it aligns with stronger risk transfer. By combining stock and transit premiums, STPs often create economies of scale that result in more competitive pricing. 

In some cases, organizations may also benefit from dividend returns for favorable loss performance, further improving total cost of risk. 

In short, a stock throughput policy can deliver broader coverage, greater limits, and lower deductibles at a more competitive overall cost. With the right structure, you might even be able to remove standalone cargo insurance policies altogether. 

If you’re reassessing how your inventory is insured across the supply chain, now is a great time to explore what an STP can deliver for you. Get in touch to find out which options are available to help you manage risk cost effectively.