If your business ships goods domestically or internationally, or operates warehouses and distribution facilities, marine cargo and stock throughput insurance may be the most important coverage you’re not carrying. Here’s what these policies cover and why they matter.
What Marine Cargo Insurance Covers
Marine cargo insurance covers physical loss or damage to goods while they are being transported — by ocean, air, rail, or truck. Covered perils typically include theft, fire, sinking or seastorm damage, collision, and water damage. Cargo policies can be structured for single shipments or as open policies that automatically cover all shipments up to specified limits.
What Is Stock Throughput Insurance?
Stock throughput (STP) insurance is a comprehensive policy that covers goods from the point of raw material purchase through production, storage, and final delivery. Unlike traditional cargo policies that cover only transit, STP provides seamless coverage across the entire supply chain — from supplier warehouses to your distribution centers to final delivery. For businesses with complex, multi-location supply chains, STP is often more efficient and more protective than purchasing separate property and cargo policies.
Who Needs This Coverage
Any business that moves high-value goods, temperature-sensitive products, or specialized cargo needs marine cargo coverage. Pharmaceutical companies, natural supplement manufacturers, electronics distributors, food and beverage producers, and cannabis and hemp companies are all strong candidates. If your commercial property policy covers your inventory while it sits in your warehouse but not while it’s in transit, you have a significant coverage gap.
Valuation and Coverage Limits
Cargo policies are typically written on a replacement cost or invoice value basis. Setting the right insured value is critical — underinsuring your cargo means you bear part of every loss. For goods with volatile pricing (cannabis, specialty commodities) or goods whose replacement cost significantly exceeds purchase price (custom-manufactured equipment, specialty pharmaceuticals), valuation must be carefully considered.
Bozzuto Group’s Logistics and Supply Chain Expertise
Bozzuto Group works with businesses across complex supply chains — including natural products, specialty manufacturing, and pharmaceutical distribution — to structure marine cargo and stock throughput programs that eliminate coverage gaps. Contact us to discuss your supply chain risk.