SPG

Supplier Performance Guarantee

Protection for buyers where a supplier delays milestones, abandons performance, delivers materially defective work or forces replacement supplier costs.

0.3–1.8%

Indicative annual premium

Risk-adjusted against contract value.

90%

Typical insured percentage

Self-retention remains with the insured.

30 days

Grace period

Typical delay buffer beyond milestone dates.

Milestones

Structured schedule

Coverage follows agreed performance obligations.

Best suited for

Where this product fits

Project owners depending on critical supplier milestones.
Construction, infrastructure, engineering or technology procurement teams.
Contracts where late delivery creates replacement or standby costs.
Buyers requiring performance cover without traditional supplier collateral.

Coverage Summary

What this product is designed to cover.

Delay beyond agreed milestone dates plus the policy grace period.

Supplier abandonment or cessation of work after written demand.

Material defect requiring remediation or replacement supplier engagement.

Supplier insolvency during the performance period.

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

Milestone mapping

contract obligations are converted into dates and values.

Step 2

Supplier assessment

financial, operational and country risk checks are reviewed.

Step 3

Underwriting referral

complex projects or higher contract values move to manual review.

Step 4

Ongoing monitoring

supplier deterioration can trigger alerts and protective action.

Documents typically requested

Supply contract with milestone schedule.

Technical specifications or statement of work.

Evidence of supplier acceptance and agreed delivery dates.

Replacement supplier quotes if claim arises.

Indicative terms

Policy limit follows the approved contract exposure and underwriting terms.

Consequential losses must be specifically approved and listed.

Coverage normally excludes subjective dissatisfaction where goods conform objectively.

Material contract changes require Meridian consent.

Important limitations

Buyer-caused delay, non-payment or specification changes.

Force majeure unless specifically endorsed.

Unapproved liquidated damages, fines or penalties.

Currency fluctuation and losses above policy limit.

Example Use Case

How a buyer may use SPG.

A project owner orders specialist equipment with seven delivery milestones. The supplier misses fabrication and shipment dates, then stops responding. SPG is designed to support replacement supplier cost and approved direct losses, subject to the policy schedule.

Claims and notification logic

Notify delay, abandonment, defect or insolvency within the policy timeframe.
Provide contract, milestone evidence, correspondence and loss calculation.
Obtain replacement supplier quotes where replacement cost is claimed.
Cooperate with loss adjuster or underwriter review for larger claims.

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.