Difference Between Cargo Insurance & A Full Stock Throughput Policy

Managing risk across a modern supply chain can be challenging. Many logistics managers, freight forwarders and importers or exporters rely on cargo insurance to protect goods in transit, yet this type of cover often ends once stock enters storage. This creates gaps at a critical point in the journey.

A stock throughput policy provides a more complete solution by protecting goods in transit and in storage. In this guide, we explain the key differences between both types and why they matter.

The limitations of standard cargo insurance

Cargo insurance is designed to protect goods while they are in transit. It typically applies from the moment goods leave their point of origin until they arrive at the final delivery location. For businesses that regularly move products across borders or within Australia, this type of cover is a fundamental part of risk management.

However, traditional cargo insurance is limited to movement. Once goods are unloaded and placed into storage, even for a short period, the cover usually ends. If a fire, theft event or accidental damage occurs while goods are in a warehouse, cargo insurance is unlikely to respond. This can leave businesses exposed at one of the most vulnerable points in the supply chain.

What a stock throughput policy provides

A stock throughput policy extends protection beyond transit to include storage at owned or third-party premises. It incorporates the benefits of cargo insurance while adding broader protection for inventory throughout its full lifecycle, from overseas suppliers to end customers.

In practice, a stock throughput policy covers goods while they move through international or domestic freight networks and while they remain in storage at ports, warehouses or distribution hubs. This creates a single, continuous safety net that follows your inventory rather than ending at specific points in the journey.

A scenario that shows the difference

Consider a shipment that arrives in Australia and is placed in a warehouse while awaiting distribution. Before it can be dispatched, a fire damages the stored goods. Under a standard cargo insurance policy, the business may not be covered because the goods were no longer in transit. A stock throughput policy, however, would typically respond because it includes storage risks within its scope. This scenario highlights how gaps can arise when businesses rely solely on cargo insurance.

Key benefits for logistics professionals

Seamless protection

A stock throughput policy reduces the chance of breaks in cover as goods move between transport and storage. This continuity supports more resilient supply chain operations and helps reduce uncertainty during high-volume or peak periods.

Simplified claims handling

When a single policy covers the entire journey, claims tend to be more straightforward. Businesses work with one insurer and one broker, which reduces administrative time and helps keep the process clear.

Improved risk management

A stock throughput policy offers broader visibility across your supply chain exposures. With all goods insured under one structure, it becomes easier to track risk, plan inventory movements and make informed decisions.

Protect your inventory with Broad Risk Insurance Brokers

Relying on cargo insurance alone may not provide the level of protection required for today’s logistics environment. A stock throughput policy brings together transit and storage cover to create a unified and comprehensive solution that supports stronger operational continuity.

It also complements broader risk needs, including wholesale insurance for high-volume stock movement, marine insurance for international freight exposures and transport and logistics insurance for domestic distribution.

At Broad Risk Insurance Brokers, we can help you prioritise your business interests by protecting your inventory. Discover the full protection of a stock throughput policy today.

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Disclaimer: The information and advice provided by Broad Risk Insurance Brokers is general in nature and does not take into account your individual objectives, financial situation or needs.

You should consider whether the advice is appropriate for you and read the relevant Product Disclosure Statement (PDS), policy wording and Target Market Determination (TMD) before making any decision about purchasing, renewing or cancelling an insurance policy.

If you require personalised advice that considers your specific circumstances, we recommend speaking with one of our qualified insurance brokers.