MOP /Stock Throughput Covers – An Analysis – Part 3 – Where and What is Covered Under a MOP Cover
As I always say, no two policies are the same so please check the policy you are contemplating using but often the locations include:
- Worldwide coverage
- Insured’s own location
- Retail locations
- Warehouses, Processing locations and Distribution Centres
- Unnamed locations
- Third Party Locations
This certainly has appeal and provides a wider geographical cover than a standard (“Industrial Special Risks (” ISR”) policy.
The breadth of coverage is similar to that of an ISR in that it covers all loss or damage, except that which is excluded. The big difference is typically that flood is insured as standard under some, NOT all, MOP policies.
As a claims person, I have come to the conclusion that just about everywhere in Australia can be affected by flood.
In summary, the benefits of the policy are purported to be that it is a single, all-inclusive, worldwide policy covering goods, whether finished or otherwise, in transit or otherwise, on what we used to call an “All Risk” basis.
- Coverage for goods in Storage / Detention /Processing without time limitations.
- Policy is typically rate against sales turnover. This is a “Non Reporting” Policy.
- Typically they have low Deductibles on goods in Storage /Detention. (Please remember the Insured may end up with two deductibles to pay if the building or contents are damaged in the same incident and insured under a separate policy.
- Limits of liability for Storage / Inventory in excess of $100 million per location are available which may assist when you, have a problem with capactity
- Rating as I explained in the first of these articles is often more competitive.
- Stock can be insured against “Selling Price (as a claims adjuster, I can attest that this can increase the morale hazard with some insureds).