Marine Insurance

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Sales turnover policy (STOP) is a highly evolved marine insurance cover. Policy is designed to protect businesses against financial losses resulting from unexpected events such as fire, theft, or damage to stock, machinery, or property. It provides coverage based on the insured’s sales turnover, offering financial protection for the assets and operations of the business.

Thus, it is suitable for industries where multiple internal transits are required for producing/manufacturing of the final product for sale. Instead of covering a particular type of transit, this policy covers all internal transits including :

1. Domestic purchase of raw materials and consumables
2. Imports
3. Inter-factory, inter-warehouse, or inter-depot transfer
4. To & fro job work movements
5. Domestic sales
6. Exports, etc.

Additional Read: Marine Hazards Every Exporter & Importer Should Worry About

Clients take STOP with a sum insured equal to the expected annual sales turnover of the company. Therefore, Premium is charged based on sales turnover declaration submitted by the client at periodic intervals. In case the sum insured covered in the policy does not fully utilize/consume, the client can seek a refund of the premium from the insurer for the un-utilized amount.

A list of a few benefits of the sales turnover policy are below:

1. Saving on premium in Sales Turnover Policy –

As the sales turnover policy covers multiple legs of transit under one umbrella policy, it leads to sizable premium savings. It is possible to achieve premium savings with a Sales Turnover Policy. By accurately estimating the sales turnover and choosing the appropriate coverage, businesses can avoid overpaying for excessive coverage. However, it is crucial to ensure the chosen coverage adequately protects against potential losses, striking a balance between cost savings and comprehensive coverage for the specific needs of the business.

2. Policy administration –

Maintaining and managing all marine insurance risks under one policy is convenient as well as seamless for the insured. Consolidating all marine insurance risks under a single policy offers convenience and seamlessness for the insured. It simplifies the administrative process, ensures comprehensive coverage for various marine risks. Besides, it also facilitates easier management and claims handling in case of any incidents or losses.

3. Flexibility in submitting declaration –

In fact, most insurers allow the flexibility to clients to follow their preferred timeline for submitting periodic turnover declarations. So, the insured can submit a declaration anytime before the 15th day of the following month which allows him/her the desired flexibility to co-ordinate internally for data collection.

4. Intermediate storage cover under Sales Turnover Policy –

Insurers are flexible to cover intermediate storage of goods in transit up to a defined number of days within, the turnover policy. Intermediate storage cover under a Sales Turnover Policy provides insurance protection for goods during temporary storage between different stages of the sales process. It also ensures coverage against potential losses or damages that may occur during this period. However, obviates the requirement of a separate policy cover for intermediate storage.

5. Premium payment terms –

Since the sales turnover policy is consumption-based, insurers are flexible to offer clients attractive payment options – quarterly or half-yearly premium payment instead of upfront payment. Hence, flexibility helps clients to manage cash flow better.

SecureNow Insurance Broker can assist you in purchasing the best Sales Turnover Policy by conducting thorough research, engaging in discussions with you. We make it possible by understanding the specific needs and risks of your business, leverage our expertise and industry knowledge.

SecureNow, helps its customers by comparing policy options, negotiate terms, and ensure they receive appropriate coverage at competitive rates. Their support streamlines the process, helping you make informed decisions and secure the most suitable policy for your business.

Contact us at 96966 83999 or write to us at support@secuenow.in and share your coverage requirements.

About The Author

Simran

MBA Insurance and Risk

With extensive experience in the insurance industry, Simran is a seasoned writer specializing in articles on marine insurance for SecureNow. Drawing from 5 years of expertise in the field, she possesses a comprehensive understanding of the complexities and nuances of marine insurance policies. Her articles offer valuable insights into various aspects of marine insurance, including cargo protection, hull insurance, and liability coverage for marine-related risks. Renowned for their insightful analysis and informative content, Simran is committed to providing readers with actionable information that helps them navigate the intricacies of marine insurance with confidence.