What Is Stock Throughput Insurance?
Stock Throughput Insurance is property insurance that covers raw stock, stock in process, and finished products/inventory of the insured while stored, in process, or in transit to the end customer.
Who is it for?
Distributors: Are responsible for transporting cannabis goods, arranging for testing of cannabis goods, and conducting quality assurance review of cannabis goods to ensure they comply with all packaging and labeling requirements.
Distributor Transports: Allows a licensee to transport cannabis goods between licensed cultivators, manufacturers, and distributors. A licensee may not transport cannabis goods to a licensed retailer and may not engage in any other distributor activities.
Why does the Cannabis Industry need Stock Throughput Insurance?
1. Combined Coverage STP combines the risks of Storing, Processing, Packaging and Transporting Stock/Inventory coverage into one cover form, providing protection seamlessly, from seed to sale.
2. Selling Price Valuation Valuing Stock/Inventory at the Selling Price enables the insured to be indemnified for the time lost at each point of processing. This coverage would include the Business Interruption for the time it took to process the product all the way up to the point loss was sustained.
3. Simplified Claims Processing No more consulting multiple carriers in the case of a loss to the insureds inventory. No matter where the loss occurs, you call one place to handle all of your questions.
4. “All Risks” Basis Our Stock Throughput Insurance is written on an “All Risks” basis, subject to several standard Institute Marine Cargo Clauses being used by all trading/commodities sectors throughout the US and the World.
Coverages not included in a typical named perils form:
- PRODUCT IN PROCESS Breakdown and/or faulty operation and/or malfunction of the illumination, heating, refrigeration or cooling equipment and/or any other processing machinery, lab equipment
- TRANSITS/CONVEYANCE Covered While In Transit to/from all destinations within assigned territory
- IN STORAGE Covered while in Storage awaiting processing and/or final sale
- ATMOSPHERIC CONDITIONS Unintended and harmful atmospheric conditions including temperature, illumination, humidity, CO2 & O2 levels
- LOADING / UNLOADING Including the risks of loading prior to and unloading after arrival of all transits
- CHEMICAL DAMAGE Unintended damage by chemicals which are applied after the product has been harvested
- BLENDING/ALTERATION/CONCENTRATION Errors in blending and /or dilution and/or alteration of insured product
- COMINGLING Comingling of Seed/Product
- PRODUCT RECALL In the event you must recall finished product and re-purpose or destroy
- THEFT LIMITS Increased Theft Limits in Excess of $50,000
- CONTAMINATION In the event of bulk shipping container(s) having been tampered with in any way or any shipping container being delivered with broken or missing seals the goods may be contaminated or adulterated and as such will not deny a claim purely on the grounds that the Assured is unable to obtain evidence of such contamination or adulteration