Modern manufacturing is increasingly decentralized with the rise of complex, global supply chains. Instead of operating out of one manufacturing site, companies may now partner with contract producers, use independent logistics firms for distribution, and store materials or finished items in rented or leased facilities worldwide.

For many Canadian manufacturers, inventory is often housed in overseas third-party logistics (3PL) warehouses whether in the U.S., Europe or Asia. Traditional property policies rarely keep up with this business model. Coverage may be limited to Canadian locations or strict terms imposed for inventory transported across borders, leaving significant risk exposure.

Stock throughput (STP) coverage is designed specifically to address this challenge. It ensures your stock is protected through every stage of the supply chain without geographic restrictions and regardless of who controls it along the way.

What Makes Stock Throughput Coverage Different?

In the past, businesses needed separate policies for marine cargo, property stock and inland transit. Stock throughput consolidates all of these into a single plan, offering continuous protection from the point of origin to the end customer. It can include:

• Raw materials shipped internationally
• Products in third-party manufacturing facilities
• Stock stored in public or contracted warehouses
• Finished goods in transit to buyers

From shipping containers to delivery trucks to pallets sitting in another company’s warehouse (even abroad), one STP policy can extend coverage seamlessly.

Meeting the Needs of Global Operations

More companies are outsourcing manufacturing, packaging and distribution to external partners, sometimes avoiding the cost of owning production plants or storage space altogether.

If your goods are stored in a location you do not own or control, a typical property policy may not respond to losses. Likewise, your contractor’s or 3PL’s policy is unlikely to offer full reimbursement.

Stock throughput protects inventory throughout its entire custody chain (including while in third-party hands) and because it is a standalone policy, claims made under it won’t affect your property insurance rates or claims record.

Advantages Over Traditional Property and Cargo Insurance

STP plans are usually managed by marine insurers, who have niche expertise in safeguarding high-value goods in transit. They are often better positioned to provide catastrophe coverage for events like earthquakes, floods and fires.

For example, manufacturers operating in British Columbia may secure earthquake coverage under STP when traditional property insurers either exclude it or require prohibitively high deductibles. This flexibility is a major advantage for businesses with supply chain exposure in high-risk regions or foreign markets.

Enhancing Business Continuity With Selling Price Valuation and Extra Expense Protection
An STP policy can be structured around selling price valuation, which means compensation includes not only the replacement cost of your goods but also the revenue they would have generated. This helps protect profit margins and supports financial recovery after a loss.

Many policies also offer extra expense coverage, which may include:

• Emergency sourcing of replacement goods
• Expedited freight or shipment rerouting
• Temporary relocation of storage or production
• Other urgent measures to keep operations running

These options can provide targeted support even if you do not carry a full business interruption policy.

Simplifying Claims Management

Traditional insurance often involves multiple carriers (i.e. one each for marine, property and inland transit) which can delay claims as providers debate which coverage applies.

With STP, you deal with one insurer and one claims team, making the process faster, more transparent, and less disruptive when quick recovery is critical.

Is Stock Throughput Right for Your Business?

This coverage is especially beneficial for Canadian manufacturers who:

• Keep goods in overseas 3PL facilities (U.S., Europe, Asia)
• Use contract manufacturing or co-packing services
• Lease or rent warehouse space
• Import raw materials or components
• Sell and ship across provincial or national borders
• Seek catastrophe protection for events like floods or earthquakes
• Want to avoid property insurance claims that impact renewal costs

A Policy Built for the Reality of Manufacturing Today

The manufacturing process can now span multiple locations, partners and continents. STP aligns with the fluid, interconnected nature of modern supply chains, closes gaps left by standard policies, and enables growth without sacrificing protection.

If your current insurance no longer reflects how you operate, an Acera Insurance advisor can help you explore whether a stock throughput plan is the right fit for your business model.