What is Stock Throughput?
A single policy covering the Insured's raw materials, goods and/or merchandise from the time they have an insurable interest until such time that interest ceases
Dedicated Capacity
Risk Strategies has its own cargo/stock throughput facility with dedicated capacity at Lloyds. Some of the highlights of this product include:
Ocean cargo or stock throughput programs.
$25M capacity with additional capacity available as needed.
100% Lloyds/LUA capacity.
$100,000 claims settlement authority.
With the increased cost of CAT capacity in the traditional property market, stock throughput is a strategy we should look at for any account with inventory exposed to critical wind/flood/EQ.
Stock Throughput Coverage
Supplies, raw materials and finished products
Uninterrupted coverage - from “Cradle to Grave”
Whilst in transit whenever / wherever in the world
Pre - manufacture storage.
At third party processors / outworkers
Storage of finished product in distribution centres.
Distribution to final customer, including installation if required.
Whilst at retail stores.
Why use it?
Maximise capacity between the Marine and Non-Marine markets and provides increased limits for windstorm, flood and earthquake exposures.
Lower retentions for stock / inventory particularly for catastrophe exposures.
Reduce costs and administration.
Elimination of “Grey Areas” between standard Cargo policies and Non-Marine policies.
Mitigates effects of major transit and/or stock losses.
Offers stability in pricing.
Scope of Coverage
All Risks of physical loss or damage, including earthquake, flood and windstorm.
Low level deductibles at fixed dollar (not percentage) amounts.
War (water or airborne), Strikes, Riots and Civil Commotions and transit-related terrorism.
VALUATIONS: Insured's Selling Price - Cargo in transit - Finished goods in store - Replacement Cost / Selling Price less unincurred expenses - Raw materials - Work in progress