Does your client have a supply chain? 

Are they responsible for raw materials, goods in production and finished products in that supply chain? 

Do they have multiple storage locations? 

Do their inventory values fluctuate over the year?

If you answered yes to any of the above questions, intermediaries should consider the breadth of coverage and potential premium benefits of a London Market Stock Throughput (STP) policy for your client.

Cargo and STP insurance covers a company’s goods and assets against physical loss or damage whilst at the insured’s risk anywhere in the supply chain, in transit and in storage as inventory.

Despite a significant hardening of rate, STP cover continues to provide unique benefits:

1. The coverage is broad (often much broader than a property form) and tailored to the cargo/inventory, providing seamless and continuous asset protection throughout the supply chain.
2. USD500m plus of subscription capacity is available, including for catastrophe perils. 
3. Lower deductibles are available for catastrophe perils compared to the property market. Deductibles are presented in dollar terms rather than as a percentage, allowing for greater budgetary control around contingent and actual loss funding.
4. Property loss records remain ring-fenced from the STP policy; therefore STP price is not adversely affected by property claims history.
5. There is one set of underwriters insuring cargo and stock, which means there is no potential ‘gap’ in insurance from multiple policies being issued by different carriers for each link in the supply chain, allowing a smoother claims process without disputes about on which policy a loss occurred.

Miller has one of the largest and most experienced teams in the market. We place STP cover for a wide variety of policyholder clients, from electronic companies to manufacturers and trading houses.