According to the U.S. Department of Transportation, waterborne vessels carried over $1.7 trillion of cargo in 2019. Indeed, cargo ships are the primary mode of transport for international freight. If your business is one of the many which make use of marine cargo to import and export goods, you are probably aware of the hazards to which freight can be subjected. Stock throughput (STP) insurance offers a way to mitigate these risks, keeping raw materials, semi-finished and finished articles covered throughout their lifecycle, from assembly to delivery at their final destination.
What Is Included in STP Insurance?
A comprehensive form of import and export insurance, STP has several components:
- Inland freight insurance
- Marine cargo insurance
- Storage and property insurance
Products are not only covered while at the insured’s premises. They are also protected when at consolidators, subcontractors and storage facilities.
What Are the Advantages of STP Insurance?
There are several benefits of investing in a stock throughput policy. The bundling of three types of insurance reduces costs and streamlines administrative and claims processes for the insured. Gaps in coverage are also eliminated with the provision of end-to-end continuous protection. Moreover, STP typically covers catastrophic events that are often excluded from property policies, such as earthquakes and floods.
As the global economy expands, businesses are increasingly relying on international marine cargo to transport their goods. STP provides vital safeguards for products, ensuring there are protected at every stage of their journey.