WHAT CAN STOCK THROUGHPUT INSURANCE DO FOR YOU?
Often the manufacture, transit and storage of products are insured under separate policies for Cargo whilst in transit and Property All Risks for storage, more often than not with different underwriters. You may ask “at what point does a Cargo policy cease and the Property All Risks policy incept, is there any gap in cover”? A good question and unfortunately the answer is yes, there is potential gap in cover.
To take an example, a large consignment is delivered which has been passed through a security barrier to the storage area but authorised personnel are missing to take over the goods. If they are subsequently stolen when the driver seeks assistance, you may have a rude awakening. The cargo underwriters will probably claim the barrier was lifted and therefore a property claim, the property underwriters will deem that the goods were still on a carrying conveyance and therefore a cargo loss. Unfortunately this isn’t just an example for a potential gap in cover, this event actually occurred, and the Insured was left out of pocket.
It can get even more complicated if you are involved with the transportation to post-conflict, hostile territories such as Iraq and Afghanistan where the limited available markets can make the potential gap in cover even greater due to terms and conditions underwriters are prepared to offer.
There have also been examples of larger manufacturers purchasing separate Cargo insurance policies for differing operational divisions which with Inter-Company movements have led to assumptions being made, that one division has arranged cover, when in effect neither have done so..
As a Manufacturer or Freight Forwarder you can access coverage for your global transit and stock exposures combined under one contract, including raw materials and finished products if required, providing you cradle to grave cover.
It can be a solution for your global supply chain with a vast reduction of potential gaps in cover and ease potential administration problems within your global network.
So in addition to continuous coverage what other benefits can you obtain? Well these could include:
- Lower deductibles
- Competitive premium with one policy one market
- Beneficial basis of valuation, especially on Sales Price where losses would be settled on the same basis even if your goods are unsold.
- Lower administration costs, easier to run, with an annual premium adjustment at expiry.
If you need to know more simply contact us and we can review your requirements and seek an alternative way for you to meet your insurance requirements, wherever your goods need to go.
Contact: [email protected]
