For brokers managing clients with goods in transit, relying on a mix of traditional property and transitonly policies often means navigating overlapping terms and potential coverage gaps. That’s why more brokers are turning to Stock Throughput Policies (STPs), which consolidate protection for goods from production to final delivery, including storage in between. Here’s why STPs might be worth a closer look.
Property policies typically cover goods while stored at a fixed location. Transit-only policies activate during shipping. But what about the gray areas in between? What if inventory sits in a temporary warehouse or in the custody of a third party?
STPs solve for this by following the goods — from raw materials to finished product, from factory floor to final destination. With a single policy covering all points in the supply chain, there’s no ambiguity about what’s covered or when.
A major Chilean grocery chain transitioned from traditional cargo and property coverage to a new Stock Throughput (STP) policy for the first time, with limits of $53M.
One of the biggest frustrations for brokers and insureds is claims friction, especially when losses fall between policies. With an STP, claims are handled under a single policy by one insurer or adjuster. That clarity can reduce settlement time and help brokers maintain trust, even in the face of a loss.
When you file a claim with Parsyl, you’re working directly with decision-makers. Our team has full authority to settle claims on behalf of the Essential Consortium and Essential Binder.
Managing separate policies for storage and transit can mean juggling multiple renewal dates, billing schedules, audits and insurer contacts. For brokers, it’s a drain on internal resources. For clients, it’s a pain point that can make insurance feel more complicated.
STPs streamline the insurance buying experience, allowing for more efficient servicing, cleaner documentation, and clearer communication. That means less time chasing paperwork and more time advising clients.
Modern STPs offer a high degree of flexibility — allowing brokers to design coverage that matches a client’s operational realities. Whether the business imports, exports, stores, distributes, or manufactures goods.
A tailored STP can accommodate:
S Fluctuating inventory values
S Complex international movements
S Specific storage conditions or vendor arrangements
Another major advantage? Smarter deductibles.
Storage deductibles under an STP are often more closely aligned with the actual exposure of insured inventory values. Traditional Property policies usually carry much larger deductibles, since they are designed to cover not just inventory, but also buildings, fixtures and other business personal property.
That difference can make a meaningful impact when it’s time to file a claim — enabling insurers to respond more readily when stored goods are lost or damaged.
Parsyl’s Stock Throughput product offers $55M in capacity. This means brokers can place larger risks with a single carrier, removing the need to layer coverage or manage multiple insurance policies.
Parsyl’s Stock Throughput product offers $55M in capacity.
$55M
STPs are more than a convenience — they can offer a smarter way to insure goods in a global, just-in-time economy. As risks evolve and client expectations rise, brokers who lead the way with holistic and efficient solutions will be the ones who grow and retain the business.
