APP
Advance Payment Protection
Buyer-side insurance for advance payments where a supplier fails to deliver, becomes insolvent or repudiates the contract before goods or services are received.
Indicative premium
Risk-adjusted against the advance payment amount.
Typical insured percentage
10% buyer self-retention subject to wording.
Target issuance
For standard risks after required checks.
Waiting period
Typical non-delivery buffer after contractual delivery date.
Best suited for
Where this product fits
Coverage Summary
What this product is designed to cover.
Supplier non-delivery by the contractual delivery date, subject to the policy waiting period.
Supplier insolvency, administration, liquidation or analogous insolvency process.
Written repudiation of the supply contract by the supplier.
Irrecoverable advance payment loss, net of recoveries and subject to policy limit.
Digital Journey
From application to policy record.
Meridian’s public product journey is designed to feel simple for the client while maintaining underwriting discipline behind the scenes.
Step 1
Contract capture
buyer enters supplier, jurisdiction, value, advance amount and delivery date.
Step 2
KYC and supplier review
buyer verification, supplier identification and sanctions screening.
Step 3
Risk scoring
contract risk, supplier profile and country risk produce a referral or quote path.
Step 4
Policy issue
accepted quote, paid premium and completed checks generate policy documents.
Documents typically requested
Signed supply contract or purchase order.
Proof of advance payment or scheduled payment evidence.
Supplier company details and country of registration.
Delivery date, incoterms and correspondence with supplier where available.
Indicative terms
Indicative policy limit follows approved advance amount and underwriting decision.
Policy normally runs from payment/inception to 30 days after delivery date.
Premium shown net and gross of applicable taxes where relevant.
Coverage attaches only after required premium and policy conditions are satisfied.
Important limitations
Buyer breach of the underlying supply contract.
Quality disputes where non-delivery is not the direct cause of loss.
Known adverse supplier information not disclosed before inception.
War, sanctions or political risks unless covered by a separate endorsement/product.
Example Use Case
How a buyer may use APP.
A UK importer pays a £180,000 deposit to a manufacturer in Turkey for custom machinery. The supplier enters insolvency before shipment. APP is designed to respond to the irrecoverable advance payment loss, subject to policy wording and evidence.
Claims and notification logic
Next Step
Ready to structure this cover?
Start an application with the contract, supplier details and requested coverage amount. Meridian will guide the rest of the workflow.