Stock throughput insurance provides end-to-end coverage for goods in transit or storage — domestically and internationally — under a single policy. It’s ideal for manufacturers using third-party partners for production, warehousing or transportation. With options for selling price valuation and catastrophe protection, it helps businesses maintain continuity while avoiding gaps in traditional property insurance.
The evolution of global supply chains has led to a decentralized approach in modern manufacturing. Rather than operations being confined to a single factory, you could be engaging contract manufacturers, distributing through third party logistics providers and storing products in rented or leased facilities.
If, like many Canadian manufacturers, you have finished goods in 3PL warehouses abroad (i.e., United States, Germany, Japan), you already know how complex it can be to insure that inventory. Traditional insurance programs were not built to accommodate this business model. So, domestic property insurers may only offer coverage within Canada or impose significant limitations for goods that move between countries.
Stock throughput (STP) insurance is designed to solve this problem. It provides globally coordinated protection that follows your inventory through the entire supply chain, whether in transit or storage, regardless of location and no matter who is handling it along the way.
What is stock throughput insurance?
Historically, there would be separate policies for marine cargo, property stock and transit insurance. Stock throughput covers your goods from the point of origin to their final destination — all under one policy. This includes:
- raw materials being transported overseas
- goods in contracted manufacturing facilities
- inventory stored at third-party or public warehouses
- finished products en route to customers
Whether your inventory is in a shipping container, on a truck or sitting on a pallet at another company’s facility — even across international borders — it can be covered under one stock throughput policy.
How stock throughput supports manufacturers’ insurance for global operations
Manufacturers are turning to external partners for production, packaging and distribution. Many are scaling without investing in their own factories or warehouse infrastructure at all.
If you are keeping inventory in a facility you do not control, standard property insurance likely will not respond to a claim. A 3PL or contractor’s policy usually will not fully cover your inventory either.
Stock throughout insurance protects your inventory across the full chain of custody, even when in the hands of third parties. And because it is a separate line of coverage, a loss will not affect your property insurance premiums or claims history.
Benefits of stock throughput insurance over traditional property and cargo insurance
Stock throughput policies are typically underwritten by marine insurers with specialized expertise in protecting mobile, high-value assets. These insurers are often better equipped to provide coverage for catastrophic risks like earthquake, flood and fire.
For example, manufacturers with operations in British Columbia can often secure earthquake coverage under a stock throughput policy, even when traditional property insurers exclude it or apply significant deductibles.
This added flexibility is particularly important for companies with supply chain exposure in higher-risk locations or foreign jurisdictions.
Selling price valuation and extra expense coverage support business continuity
Stock throughput policies can be structured with limits based on selling price valuation, meaning you will be reimbursed not only for the cost of inventory, but also for the revenue it would have generated. That additional protection helps preserve profit margins and provides financial stability to your business after a loss.
Some policies also offer extra expense coverage, which can pay for:
- sourcing emergency replacement goods
- expedited shipping or rerouting
- temporary relocation of inventory or production
- other urgent measures to maintain operations
These enhancements provide targeted support even without a full business interruption policy.
Stock throughput insurance offers simplified claims handling
Traditional insurance programs often involve multiple carriers: one for marine, one for property and one for transit. When filing a claim with more than one carrier, the process can be delayed due to disputes over which policy is triggered and inconsistent claims service.
With a stock throughput policy, there is only one claims team. That means faster resolution, clearer communication and less disruption when you need to recover quickly.
Who should consider stock throughput insurance?
Designed for businesses combining in-house and outsourced operations — with inventory frequently in transit — stock throughput is recommended for any Canadian manufacturer that:
- stores goods in 3PL facilities abroad, including the US, Germany or Japan
- uses contract manufacturers or co-packers
- rents or leases warehousing infrastructure
- imports raw materials or components
- distributes across provincial or national borders
- wants protection against catastrophic events like earthquake or flood
- prefers to avoid property claims that can affect renewal pricing
Stock throughput insurance reflects the reality of modern manufacturing
Manufacturing is no longer tied to any one location and now often involves dynamic networks of suppliers, logistics partners and facilities spread across countries and continents.
Stock throughput insurance is built to align with how supply chains operate today and adapt as they continue changing. It protects your inventory wherever it is, closes coverage gaps that traditional policies cannot address and empowers you to scale and operate globally.
If your insurance program does not reflect how you are doing business today, connect with an Acera Insurance advisor to discuss how a stock throughput policy can work for you.
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Mark Lee is Director, Commercial Client Care for the BC and Yukon offices of Acera Insurance. He brings more than 30 years of experience developing and structuring large, complex insurance and risk management programs, specializing in the manufacturing and technology sectors. Mark is a former board member of Canadian Manufacturers and Exporters BC and an active member of the Manufacturing Safety Alliance of BC. Connect with Mark at mark.lee@acera.ca or 604.484.4999.
Colin Campbell is a Client Executive with 18 years of international business experience in the manufacturing, wholesale and retail sectors. He is committed to working directly with clients to understand their businesses and find the best options for their needs. Connect with Colin at 604.484.4995 or colin.campbell@acera.ca.
Information and services provided by Acera Insurance, Acera Benefits and any other tradename and/or subsidiary or affiliate of Acera Insurance Services Ltd. (“Acera”), should not be considered legal, tax, or financial advice. While we strive to provide accurate and up-to-date information, we recommend consulting a qualified financial planner, lawyer, accountant, tax advisor or other professional for advice specific to your situation. Tax, employment, pension, disability and investment laws and regulations vary by jurisdiction and are subject to change. Acera is not responsible for any decisions made based on the information provided.