What is a Life Science Stock Throughput Policy (STP)? | Insurance business America
Get all the details you need about this important insurance coverage
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From Falvey Insurance Group
A Life Science Stock Throughput Policy (STP) is an insurance contract designed exclusively for our insureds in the life sciences industry. The life sciences sector is a broad category that includes companies that provide research, development, manufacturing services, and products such as pharmaceuticals, medical devices, biologics, and vaccines.
Special shipping methods are required for the distribution of these products, which may be very delicate or have particular handling risks. Helps maintain their quality, integrity and effectiveness during transport. If proper care is not taken, these products may deteriorate, expire or spoil, resulting in serious loss to the company and especially to the patients for whom they are intended. This is where life science inventory throughput guidelines come into play.
Life Science Stock Throughput Policy: Explained
A life sciences inventory throughput policy protects the assets of pharmaceutical, biomedical, bioengineering and nutraceutical companies from physical loss or damage during transportation and at manufacturing and storage locations. This Life Science Inventory Throughput Policy is specifically designed to address the unique challenges and risks associated with transporting and storing life science shipments from raw materials to work-in-progress to finished goods and their final last-mile delivery to customers are.
These products are often exposed to extreme temperatures, may be sensitive to light and moisture, or may have a short lifespan. This means that even seemingly minor disruptions or delays in transportation can compromise their integrity and result in losses – not just financial losses due to missed milestones or missed sales, but especially interruptions in care or loss of life as many patients Consignments rely on these time-critical measures.
Examples of risks that are dangerous for life science transport
- Exposure to light
- Temperature fluctuations
- theft
- manipulation
- Transportation delays beyond the control of the insured
- Power outages
Human error is a common cause of damage that is often preventable. From inadequate or improper packaging to incorrect temperature maintenance to failure to follow the insured’s written instructions. Although this type of damage is not always insurable, it can often be prevented through written statements of work that state:
- Proper packaging, labeling and handling
- Review and contract processing with logistics service providers
- Assessment of shipping routes and shipment tracking devices
- Active and passive devices for monitoring and controlling required temperatures.
Our loss prevention team works with our insureds to provide them with specialized expertise, including reviewing and developing current best practices and improvement recommendations to prevent uninsurable losses at all points in the supply chain.
Falvey’s coverage of life science stock throughput
Falvey Insurance Group’s insurers and claims specialists understand the unique challenges of transporting life sciences cargo and are here to work with your customers to provide best-in-class insurance coverage and expert claims handling. Insurance coverage begins with a Marine Cargo & Stock Throughput policy that targets product integrity throughout the supply chain, including valuable enhancements such as delay coverage, flexible assessment to meet customer needs, damaged goods control and additional costs. Contact us today to find out more about our insurance coverage.
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2024-05-13 04:00:00
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