The way goods move around the world today is more complicated than ever, and that complexity directly affects how they should be insured. If you manufacture, distribute, or move products, your inventory is constantly on the go.  Whether crossing an ocean, sitting in a third-party warehouse, moving domestically by truck or rail, or transitioning between handlers, the risk profile shifts every time inventory changes hands or location.

Yet many companies still rely on a traditional commercial property policy to insure stock. That’s where problems often begin.

During a recent webinar, I walked through why property policies often fall short and how cargo and Stock Throughput (STP) programs can eliminate many of the blind spots. Below is a summary of those concepts and why they matter when operating in today’s supply chain reality.

Where Traditional Property Policies Fall Short

Commercial property forms are built to protect buildings, equipment, and fixed locations. They’re not designed to follow goods as they move through a modern supply chain. Common issues include:

Restricted Territory

Most U.S. property policies only cover the U.S. (and sometimes Canada). If your product is sitting in a port overseas or traveling on an international vessel, it’s likely not covered.

Low Transit Sublimits

Transit sublimits of $50,000–$100,000 are common. The value of a single shipment can far exceed this.

Challenges with Third‑Party Locations

Inventory moves through leased warehouses and third-party logistics providers constantly. Property policies typically require scheduled locations with fixed limits, so fluctuating stock levels can easily exceed what’s insured.

Peak Season Constraints

Seasonal swings can push inventory far above normal levels. Peak season endorsements help, but they still cap the total value you can carry.

Complex Transit Wording

Who is responsible for goods during loading, unloading, and handoffs often depend on contract wording that may not align with how insurance language is structured.  Property forms don’t always align with how goods actually move.

All of this leads to one conclusion: stock often needs a coverage structure built for movement, not static locations.

Cargo Coverage: Filling Important Transit and Liability Gaps

Cargo insurance is the first step toward addressing what property policies miss.

Domestic Cargo

Covers goods moving within the U.S. by truck, rail, air, or inland waterways; often used to supplement low property transit sub-limits.

Ocean Cargo

Protects goods moving internationally; can be arranged per-shipment or on a blanket basis for regular importers/exporters.

Cargo Legal Liability & Warehouse Legal Liability

These protect your liability when you have someone else’s goods in your custody which can be critical if you store, handle, or transport products you don’t own.

Cargo coverage is essential, but it still doesn’t create a single, seamless solution for your inventory across all locations and transit modes. That’s where a Stock Throughput program can add significant value and peace of mind.

Stock Throughput: A Unified, Global Approach

Stock Throughput programs integrate what would otherwise require several separate coverages into one cohesive policy. An STP policy insures your goods (raw materials, WIP, finished product) anywhere in the world.

STP covers:

• Stock at owned locations
• Stock at third‑party or unscheduled locations
• Domestic transit
• International transit

In simple terms: you pull stock exposure out of your property program and place it into one global policy that follows your inventory wherever it goes.

How Stock Throughput Improves Supply Chain Resilience

Consistency and Clarity

One policy. One set of terms. One structure that follows goods from supplier to customer.

Pricing Advantages

Property carriers rate heavily on building characteristics and CAT exposure. Stock, by comparison, is much more stable, so STP often delivers lower rates and deductibles.

Better Property Program Outcomes

Removing stock from the property form means:

• Lower total insured values (TIV)
• Lower loss expectancies
• More underwriting capacity and better pricing
• Smaller CAT deductibles (especially percentage deductibles like wind/hail)

For many companies, STP dramatically improves the competitiveness and efficiency of the overall property program.

Is Stock Throughput Right for Every Buyer?

Not always. A few things to consider:

Minimum Premiums

Most STP programs are written in London, where minimum premiums often start around $50,000. Smaller property programs may not offer enough savings to justify the additional cost.

Carrier Flexibility

Some U.S. carriers won’t remove stock from the property form. Others may, but without enough premium relief to make STP financially practical.

Program Size

STP is most common among:

• Large national property programs
• Shared and layered placements
• Businesses with high stock values or global movement

These programs can absolutely work for smaller, single-carrier programs, but tend to be less common.

Buying with Intention

One of the biggest takeaways from our webinar was the need for intentionality. The supply chain includes multiple exposures: transit, storage, international movement, third party handling, etc. and each requires a specific coverage solution.

Cargo, transit, STP, and legal liability coverages each play a role. None of them cover everything. The real work is understanding:

• Where your goods are
• Who controls them
• What risks exist at each stage

When you understand this, you can ensure the right coverage is aligned to each exposure.

When thoughtfully designed, an STP program can consolidate many of these risks into a single, well-coordinated policy, removing guesswork and eliminating gaps before they appear.

Protect Your Supply Chain

The global movement of goods isn’t getting easier, but your insurance strategy can.

A Stock Throughput program can help you:

• Strengthen coverage
• Improve pricing
• Reduce deductibles
• Streamline supply chain risk management

If you’re exploring whether STP is a fit or simply want to pressure test your current structure, our Complex Property team at Holmes Murphy is here to help. Let’s talk through what the right solution could look like for your organization.