For businesses that ship goods regularly, per-shipment marine declarations are time-consuming and error-prone. A Marine-Sales Turnover Policy provides automatic cargo coverage based on declared annual turnover — simple, efficient and comprehensive.Instead of per-shipment declarations, an STP charges a single annual premium based on turnover. All consignments within the agreed cargo description are covered automatically from the moment goods move — eliminating administrative workload for logistics teams.Premium is based on estimated annual turnover, adjusted at year-end for actual figures. Unusual, hazardous or high-value cargoes may need specific endorsements. Both imports and exports can be covered. The STP covers goods in transit only — warehouse storage requires separate coverage.
The biggest operational advantage of a Sales Turnover Policy is that coverage is automatic and continuous. Every consignment within the policy scope is covered from the moment it moves, without requiring a prior declaration or certificate. This eliminates the risk of uncovered shipments due to administrative oversight.
Instead of calculating marine premium for each individual shipment, the STP charges a single annual premium based on a rate applied to the insured's declared annual turnover. Adjustable premiums at year-end based on actual turnover ensure that the premium accurately reflects the actual cargo volume insured during the year.
The STP provides comprehensive all-risks marine cargo coverage for all routine shipments within the agreed cargo description — covering loss or damage from loading to delivery. This broad, automatic coverage is more comprehensive and reliable than policies that require per-shipment declarations or provide only named-peril coverage.
For businesses moving dozens or hundreds of consignments per month, per-shipment marine declarations represent significant administrative effort. The STP eliminates this workload, allowing logistics and procurement teams to focus on core activities rather than insurance administration — a meaningful efficiency gain for high-volume shippers.
International trade transactions under Letters of Credit (LC) typically require evidence of cargo insurance. Under an STP, the insurer issues an open cover certificate or policy summary that can be presented to banks as evidence of coverage, satisfying LC insurance requirements efficiently across multiple transactions.
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The sum insured is based on the insured's estimated annual sales turnover, adjusted by the proportion attributable to goods in transit and the average transit time. The insurer applies a rate to this adjusted turnover figure to arrive at the annual premium. An adjustment at year-end reconciles estimated and actual turnover.
The STP covers cargo within the agreed cargo description specified at policy inception. Unusual, high-value, hazardous or restricted cargoes may require specific endorsements or declarations. The policy is designed for regular, routine cargo of consistent type and value — it is not a blanket cover for all possible goods without agreed scope.
Yes. A Sales Turnover Policy can be structured to cover both import and export consignments, domestic inland transits and international marine transits, depending on the scope agreed with the insurer. Trade lane restrictions and cargo exclusions should be reviewed at inception to ensure the policy matches actual business flows.
Most STP policies include a provisional premium mechanism — premium is paid based on the estimated turnover at the start of the year, with a final adjustment at year-end based on actual declared turnover. If actual turnover exceeds the estimate, an additional premium is payable; if it is lower, a refund may apply.
The STP covers goods in transit. Goods held in storage at warehouses — either in transit staging or long-term warehousing — may require a separate Inland Storage or Fire & Burglary policy. Some STP policies can be extended to cover brief on-dock or customs storage, but extended warehouse coverage is typically a separate policy.
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