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Stock Throughput (STP) insurance is a powerful but often overlooked marine insurance solution designed for businesses that move and store goods across complex supply chains. Unlike basic cargo policies that only cover goods in transit, STP provides end-to-end protection from the point of manufacture through ocean freight, inland transport, warehousing, and final delivery.
For South African businesses facing port congestion, rail delays, extended storage at depots, or multi-warehouse distribution, STP isn’t just an upgrade it’s a strategic necessity.
1. What Is Stock Throughput (STP) Insurance?
STP is a specialised marine insurance policy that covers your inventory continuously whether it’s on a container ship, in a truck, sitting in a bonded warehouse in Durban, or staged at a distribution centre in Johannesburg.
Unlike traditional cargo policies that expire once goods reach a warehouse, STP treats your entire supply chain as a single risk journey. This means:
No coverage gaps between transit and storage
One policy, one premium, one claims handler
Flexible limits that adjust to seasonal inventory peaks
Note: STP covers physical loss or damage (theft, fire, water damage, collision) but excludes manufacturing defects or inherent vice (e.g., spoilage due to poor product quality).
2. Who Needs STP in South Africa?
STP is ideal for:
Importers holding stock in SA ports or warehouses for weeks due to customs delays
Exporters staging goods before shipment
Manufacturers with raw materials and finished goods in multiple locations
E-commerce businesses using 3PL fulfilment centres
Retailers with regional distribution hubs
If your business has high-value inventory sitting idle for more than a few days or moves goods through multiple hand-offs transit-only insurance leaves you dangerously exposed.
3. STP vs. Transit-Only Insurance: Key Differences
Feature
Stock Throughput (STP)
Transit-Only Insurance
Coverage Scope
Goods in transit + storage (up to 12 months)
Only while goods are moving
Accumulation Control
Per location (e.g., R10m per warehouse)
Per conveyance (e.g., R10m per truck)
Claims Handling
Single policy, single point of contact
Multiple policies, fragmented claims
Best For
Complex supply chains, high inventory
Simple, point-to-point shipments
Cost Efficiency
Often lower total cost due to bundled coverage
May seem cheaper upfront—but gaps create hidden risk
Bottom line: If you’re storing goods even temporarily STP offers better protection, simpler administration, and often better value.
4. Why South African Businesses Are Especially Vulnerable
South Africa’s logistics environment creates unique risks that make STP essential:
Port congestion at Durban and Cape Town can delay cargo for weeks, forcing importers to move goods to costly off-site storage
Rail and trucking bottlenecks increase inland transit time and exposure
Warehouse theft and fire remain persistent threats in industrial zones
Customs inspections often require goods to be held in bonded facilities
Without STP, your goods could be uninsured the moment they leave the ship—even if they’re still under your financial risk.
5. How STP Works: Coverage Triggers & Key Features
STP policies are “throughput”-based, meaning coverage is tied to your inventory flow, not individual shipments. Key features include:
Automatic coverage for all goods within declared locations
Peak season adjustments increase limits during high-inventory periods
Named location schedule warehouses, depots, and 3PL facilities must be listed
Per occurrence and aggregate limits to manage catastrophic loss
Coverage is triggered by physical loss or damage from insured perils (fire, flood, collision, theft, etc.), provided the goods are within the policy’s geographic and temporal scope.
Cold Chain Goods? Refrigerated or temperature-sensitive cargo (pharma, food) requires explicit endorsement for temperature excursion coverage.
Using 3PLs? Your policy must name all third-party warehouses coverage doesn’t automatically extend to unnamed facilities.
Incoterms® Matter: If you trade under FOB, CIF, or DAP, ensure your STP policy aligns with when risk transfers from seller to buyer. Mismatches create coverage gaps.
7. The STP Claims Process: What to Expect
Because STP is a single policy:
Report the loss to your broker (e.g., Berkley Risk) immediately
Provide proof of loss: photos, inventory records, transport docs
Adjuster appointed often within 48 hours
Settlement based on insured value (typically replacement cost)
No need to determine whether the loss happened “in transit” or “in storage”it’s all covered under one roof.
8. How to Get a Quote: What Insurers Need
To get a same-day indication for STP, prepare:
Annual throughput value (Rands)
List of storage locations (with addresses)
Peak inventory levels per location
Types of goods (e.g., electronics, textiles, perishables)
Existing cargo/property policies
Claims history (past 3–5 years)
Berkley Risk works with Lloyd’s and specialist marine underwriters to structure tailored STP solutions for South African businesses.
9. Frequently Asked Questions
Q: Does STP replace my property insurance? A: No. STP covers your goods (stock-in-trade). Property insurance covers your buildings and equipment.
Q: Can I cover goods in customs bonded warehouses? A: Yes—as long as the facility is named in your policy schedule.
Q: How long can goods stay in storage under STP? A: Typically up to 12 months, but this can be extended by endorsement.
Q: Is STP more expensive than transit-only? A: Not necessarily. When you factor in the cost of separate warehouse insurance, STP is often more cost-effective—and far more comprehensive.
Q: Do I need STP if I use a freight forwarder? A: Yes. Forwarders’ liability is limited by law (often to ~R10/kg). STP covers the full commercial value of your goods
Stock Throughput (STP) insurance is the smart choice for South African importers, exporters, and distributors managing complex, multi-stage supply chains. It closes dangerous gaps left by transit-only policies, simplifies claims, and provides continuous protection from factory to final delivery—especially critical in SA’s challenging logistics environment.
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