Stock-Thru-Put Versus Standard Business Personal Property Insurance

Business Personal Property (BPP) insurance can protect physical property and equipment owned, leased, or in the care, custody, or control of the insured from loss.  At GreenWrap Insurance, we typically recommend an “all-risk” policy when available to have the broadest coverage.  The less expensive option is a “named-peril” basis of coverage.  Named perils will only cover specified, named perils in the policy and can be restrictive, while all-risk offers increased coverage, barring a few exclusions.

Depending on your business model and location, certain perils may be more important than others.  For instance, if you are in a high-crime area, you would want to make sure theft and vandalism are included.  If business operations are in Oklahoma, or Florida, for instance, you would want to obtain wind coverage for hurricanes and tornadoes.  In California, you would need Earthquake coverage.

One type of property coverage that may be better than a stand-alone property insurance per location, is Stock-Thru-Put (STP).  A Stock Throughput Policy is a type of marine coverage that insures a company’s goods throughout the supply chain, from production to in-transit, to storage, until it reaches the final destination. Coverage can include raw materials, various stages of production, and finished goods. A Stock Throughput Policy provides comprehensive protection for your products in the event of damage, disappearance, or catastrophe.

Stock-Thru-Put is an ideal coverage for Manufacturers and Distributors of tangible goods.  It is the best policy when a business uses logistics companies to move products or conducts their own logistics.  Examples of industries that utilize a STP policy are Medical Device Manufacturers and Distributors, Hemp Manufacturers and Distributors, Food Manufacturers and Distributors, Importers and Exporters, and many more.  It can also be useful when there are multiple locations to insure.  The inventory may fluctuate per location and the policy allows for that.  It is flexible, looking at average and maximum limits per location of inventory/product value rather than a flat limit per location.

Stock-Thru-Put is all-risk coverage, offering worldwide coverage for inventory with very few exclusions.  All transit and stock exposures can be covered under one policy.  This eliminates the need for multiple property policies and curtails double coverage or other policy gaps.

With regard to Marijuana, STP coverage can only be applied per state.   You would need to obtain a policy in each state because currently you cannot transport across state lines.  Should the law change, the policy would expand.  For Hemp, there is no such restriction.  STP can apply in all states, and therefore one policy could handle all the logistics and operational locations.

Please contact GreenWrap Insurance at 844-420-1936, to see if a Stock-Thru-Put policy is right for your business.

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