The recent Napa Earthquake and the harvests that are currently underway for most Agricultural products, may bring about a Stock Throughput situation. What exactly is Stock Throughput Coverage? Simply put, it’s a single policy that covers your raw materials, goods and / or merchandise from the time you have an insurable interest until such time that interest ceases, from “cradle to grave”. This is a fantastic type of insurance coverage for any manufacturing or agricultural risk. It is often an overlooked and underutilized coverage. We have access to a tailored version of this coverage that’s specifically designed for wineries and wine makers. The coverage is a valuable tool, a compliment to a property policy that among other things; eases administration, lower retentions, provides coverage while in transit anywhere in the world, provides coverage at third party processors and third party storage and provides catastrophe coverage like flood, windstorm and earthquake that may not be available from the property carrier. Also, stock throughput provides coverage for losses caused by war, strikes, riots and civil commotions and transit related terrorism. The expansive nature of this coverage makes it great for all types of food and beverage processors.
Unlike a property policy, a Stock Throughput policy carries a fixed dollar deductible, not one based on a percentage of your property values. Typical deductibles would be $2,500 for goods in transit and $10,000 for good in storage or processing. A timeline for coverage for an agricultural product might look this:
- coverage starts when harvested / picked
- while in transit for processing / packed
- while being processed (at any location), while being stored
- while being shipped (by any method, anywhere in the world), at transit hubs and distribution centers up until the time the product is received by the buyer.
You can rest assured knowing that your product is covered at all times, whether or not the carriers, third party processors or storage provided have adequate coverage.
Additionally, the finished product, whether it’s at your location or at any location, is covered, again with a small, fixed dollar amount for property losses including Earthquake, Flood or Wind.
If your in the manufacturing business, you have an exposure. If your business is growing and you are not addressing this exposure, one loss could significantly impact your business and your ability to keep your product on shelves. BayRisk Insurance focuses on protecting food related businesses. Please contact us for a quote or to discuss this and other vital coverage for your business.