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Stock Throughput Insurance

Working with our life sciences clients and our global network, Marsh developed wording for an insurance policy designed specifically to protect valuable and highly perishable goods while they move through the product life cycle—from clinical trials through commercialization.

With our placement of the stock-throughput policy, Marsh is committed to addressing your product chain’s critical risk issues, including:

  • Delay.
  • Spoilage.
  • Product valuation.
  • Warehouse contractual obligations.
  • Federal Drug Administration or other government regulations.

What's Covered Under the Stock-Throughput Policy?

Unlike a property or cargo policy, the stock-throughput policy is designed to provide continuous and comprehensive insurance coverage for your products in transit and in storage, eliminating potential gaps (or duplications) in coverage and minimizing the possibility of a loss falling between two or more policies placed with different insurers.

This “cradle to grave” coverage addresses the following stages of the product life cycle:

  • From the time that the raw material is sourced, through the assembly and work-in-progress phases.
  • During any storage periods, at any stage of the operation.
  • While in transit, whether shipped domestically or internationally.
  • In some cases, after final delivery if a financial interest is evident.

Protect Your Perishables

The sensitivity, fragility, and high value of your compounds mean that any delay can result in a total loss to your product.

Under Marsh’s placement of the stock-throughput policy, coverage for shipments of perishables is expanded and broadened from a standard cargo policy to include losses due to:

  • Delay.
  • Decay.
  • Deterioration.
  • Spoilage.

Marsh’s placement allows for the following enhancements:

  • There is no “time” deductible, which is usually required when shipping perishables.
  • Any delay due to government inspection of damaged product would be covered.

Protect Your Inventory

Protecting your product while in inventory is extremely important to the progress and success of your business.

Unlike a standard property policy, the stock-throughput policy is designed to cover all of your goods and merchandise (including, but not limited to, raw stock, materials, stock and goods in process, finished goods—and packaging materials) and similar property of others for which you are liable—at the valuation that you desire (selling price, replacement cost, or replacement cost plus).

By insuring your product inventory under the stock throughput policy, you have access to broader coverage and easier claims reporting, while being able to meet your contractual obligations for inventory processing and storage.

Marsh’s placement allows for the inclusion of coverage for:

  • Damage due to loss of refrigeration.
  • A separate limit for extra expense.
  • Damage due to earthquake, windstorm, or flood.

Retain Control Over Damaged Product

We think you’re the best judge of whether your damaged products are fit to use as originally intended—or in any other capacity.

Marsh’s placement of the stock-throughput policy can provide you with full rights to control what happens to your product after it sustains damage.

In addition, the policy is designed to provide that no product deemed by you to be unfit for use shall be sold or otherwise disposed of except by you or with your consent.

Last, if a government authority rejects a partially damaged product, resulting in a total loss to the client, the total loss would be covered.