Managing risk in today’s complex supply chains can be a challenge, particularly when it comes to stock — whether raw materials, components, or finished goods. Businesses with substantial inventory often default to covering stock within a general property insurance policy, but this can leave critical gaps in coverage, especially for US companies with global operations. Ocean marine stock throughput insurance provides a specialized solution that offers superior protection by eliminating coverage gaps, controlling costs, and managing the risk exposure tied to stock throughout the supply chain.

Consider a recent case involving a US-based electronics distributor: The company experienced significant delays and damage to a shipment of goods while in transit from an overseas supplier due to port congestion and rough handling. Although the distributor’s general property insurance covered losses at their warehouse, it excluded coverage for stock in transit, leaving them to absorb the loss. In contrast, a stock throughput policy would have provided seamless coverage for stock at every stage of the supply chain, including during transit and while waiting at ports, safeguarding the distributor’s assets regardless of location.

One of the key advantages of a stock throughput policy is its ability to provide end-to-end coverage for stock from the moment goods are produced or purchased to their final destination. While it may provide comprehensive protection for fixed locations, general property insurance often excludes or offers limited coverage to goods in transit, stored at third-party locations, or awaiting shipment at ports. This leaves critical gaps in protection, particularly for companies that rely on a complex supply chain involving international shipments and storage.

Ocean marine stock throughput policies are designed to eliminate these gaps by offering seamless coverage for stock wherever it is located — whether in production, in transit by land, sea, or air, or sitting at a warehouse awaiting distribution. These policies are especially useful for businesses with stock moving across multiple jurisdictions and stages of handling, where each step introduces a new risk. General property insurance will often exclude contingent risks — such as delays, damage, or theft occurring while the stock is in the possession of third-party logistics providers — whereas stock throughput insurance typically covers these exposures.

Another significant benefit of separating stock coverage from general property policies is the ability to control and manage insurance costs more efficiently. Stock, especially high-value inventory, can substantially increase the overall risk profile of a business, which may result in higher premiums when included in a general property policy. General property insurers may not differentiate between the risks associated with fixed property and movable stock, leading to less competitive pricing structures for businesses with significant inventory in motion.

Ocean marine stock throughput insurance, on the other hand, is specifically designed to assess and price stock-related risks, providing more accurate and tailored premiums. By working with insurers who have expertise in ocean marine risks, such as Munich Re Specialty, businesses can benefit from more refined underwriting that reflects the actual exposure of their stock — whether it's in transit, in storage, or in production.

This allows for more competitive pricing and ensures that businesses are not overpaying to cover stock that has a fluctuating risk profile, depending on its location and movement within the supply chain. Additionally, stock throughput policies often include more flexibility in adjusting limits and deductibles based on a company’s specific needs, providing further cost-saving opportunities.

Including high-value, movable stock in a general property policy can create challenges for managing the overall loss ratio. Losses related to stock — whether from theft, damage, or supply chain disruptions — can disproportionately impact the broader property insurance portfolio, particularly when stock is frequently in transit or stored in high-risk locations. This is especially true for businesses operating in industries such as manufacturing, retail, or distribution, where inventory movement is integral to operations.

By separating stock from general property coverage and placing it under a stock throughput policy, businesses can better manage these risks and isolate them from the rest of their property portfolio. This is particularly advantageous when dealing with fluctuating or seasonal stock levels, where the risk profile can change drastically over time.

One often-overlooked advantage of stock throughput policies is their flexibility when it comes to deductibles. General property policies may have standard deductibles that do not reflect the unique risk profile of stock, particularly when that stock is frequently in transit or stored at third-party locations. High deductibles on general property policies may also apply across all covered assets, meaning businesses are exposed to higher out-of-pocket costs in the event of a loss, even if the loss relates solely to stock.

Stock throughput policies, however, offer the opportunity to tailor deductibles to the specific risks associated with the stock itself. For example, businesses may opt for lower deductibles on high-risk shipments or inventory held at vulnerable storage locations, while accepting higher deductibles for stock stored in more secure environments. This flexibility allows businesses to strategically manage their risk appetite, ensuring that they are only assuming the level of risk that they are comfortable with, without affecting their broader property coverage.

Furthermore, stock throughput policies can offer tiered deductibles, where different deductibles apply depending on the stage of the supply chain. This can provide further protection for businesses that need more comprehensive coverage for certain segments of their supply chain, such as international shipments or storage in high-risk regions.

In the global economy, supply chains are more complex than ever, and businesses need insurance solutions that are designed to address the unique risks associated with stock in motion. Ocean marine stock throughput insurance offers a highly specialized solution that eliminates the coverage gaps inherent in general property insurance, provides more tailored pricing, helps manage loss ratios, and offers greater flexibility when it comes to deductibles.

For US companies with global operations, leveraging the expertise of insurers like Munich Re Specialty ensures that stock is adequately protected no matter where it moves, providing greater financial security and operational resilience in an increasingly interconnected world.