Are your clients unknowingly leaving gaps in their inventory coverage? Stock Throughput (STP) insurance streamlines protection for stock and transit under a single policy, reducing deductibles and exposure risks. Could this game-changing coverage be the key to better protection and cost savings? Read more to find out.

Stock Throughput (STP) insurance is a game-changer for businesses that manufacture, distribute, or store inventory. Yet, many agents overlook this creative coverage, often due to uncertainty about how it works or hesitation to disrupt existing property placements. Understanding STP and its advantages can help agents provide their clients with more comprehensive, costeffective solutions that help reduce exposure.

WHAT IS STOCK THROUGHPUT COVERAGE?

STP coverage originated in the cargo insurance market, expanding beyond transit-only policies to include stock and inventory coverage under a single, streamlined policy. Unlike standard property policies, which often come with higher deductibles and named peril limitations, an STP policy provides all-risk coverage for stock throughout the supply chain. This means businesses are protected against a wide range of potential losses, rather than being limited to a list of specified risks. Additionally, STP policies tend to have lower, fixed-dollar deductibles, including those for catastrophe (CAT) events. This can be a major advantage over traditional property policies, which often calculate deductibles as a percentage of the insured value. In highexposure scenarios, those percentage-based deductibles can add up quickly, making STP a more predictable and cost-effective option for businesses looking to manage their risk.

Perhaps one of the most significant advantages of STP is that it consolidates stock and transit insurance into a single policy, eliminating gaps that can occur when different policies cover different parts of the supply chain. By maintaining seamless coverage across transit and storage, businesses gain improved protection and a more streamlined and cost-effective risk management solution. This translates into several tangible benefits for businesses, including cost savings and enhanced coverage flexibility.

COMMON STP MISCONCEPTIONS

One of the biggest concerns among agents is that shifting stock coverage to an STP policy will disrupt an insured’s existing property or package policy. In reality, standard carriers often prefer this approach because it reduces their reinsurance costs and overall exposure to large loss scenarios.

Some assume that implementing STP is complex, but in reality, it’s a straightforward process with the right expertise. Partnering with an experienced broker removes the guesswork and allows agents to confidently offer their clients smarter, more effective coverage for stock and transit risks, ensuring they receive more comprehensive protection.

TOP 3 WAYS STP BENEFITS BUSINESSES

Many businesses hesitate to explore alternative coverage options simply because they are unfamiliar with the advantages. STP is designed to address common coverage concerns while offering a variety of financial and operational benefits.

Lower Premiums + Deductibles. Unlike traditional property policies, which often apply percentage-based deductibles that can lead to significant costs in high-exposure situations, STP offers lower, fixed-dollar deductibles. This is especially beneficial for businesses in catastrophe-prone areas where property policies tend to impose high deductibles for natural disaster risks.

Broader Coverage. Standard property policies often rely on named perils, which can leave businesses exposed to unexpected risks. Because STP provides all-risks coverage, stock is protected every step of the way—from manufacturing to storage to final delivery. This minimizes gaps in protection and offers businesses more reliable coverage, especially those with complex supply chains or international operations.

Valuation Flexibility. The policy can be tailored to an insured’s specific needs, including selling price valuation, which ensures that stock is insured at its final market value rather than just its cost. Additionally, STP policies often assess stock on an average annual value across all locations, helping businesses manage peak season exposures without the burden of sudden rate increases.

WHAT UNDERWRITERS WANT TO SEE

A well-prepared submission significantly increases an insured’s chances of securing favorable terms. Underwriters look for:

• Inventory Exposures: A detailed Statement of Values, including average and maximum stock values at each location
• Basis of Valuation: Selling price declarations for appropriate coverage
• COPE Information: Construction, occupancy, protection, and exposure details for storage locations
• Surveys/Inspection Reports: Any available documentation that highlights risk management measures
• Transit Exposures: Annual transport values, shipping routes, and conveyance methods
• Loss History: Five years of transit and inventory claims data, including applicable deductibles

Agents who can present a thorough and accurate risk profile will place their insured’s submission at the top of the underwriting stack.

STP MARKET OUTLOOK

The STP market has seen significant positive shifts in recent years. While availability was once limited, 2025 has brought a surge in capacity, making rates highly competitive. International markets, particularly London, continue to play a key role in expanding STP offerings, providing attractive solutions for businesses with complex or high-value inventory needs.

STP should be an essential consideration for agents working with manufacturers, distributors, or businesses with global supply chains. Partnering with an experienced STP broker can unlock new opportunities and ensure clients receive the best coverage for their needs.

BOTTOM LINE

Stock Throughput coverage is one of the most effective ways to protect businesses from inventory and transit risks. For specialty agents, offering STP not only sets them apart in the market but also strengthens client relationships and helps mitigate E&O exposures. Some agents hesitate to introduce STP simply because they aren’t as familiar with it, but working with an experienced broker removes the complexity and makes it easy to provide this valuable solution with confidence.

Ready to see how Stock Throughput can benefit your clients? Contact your CRC Group Producer today.

CONTRIBUTORS

• Farrah Schubmehl has more than 25 years of industry experience and serves as Office President for CRC Nashville.