Non-delivery

Comprehensive non-payment insurance against the financial default of a supplier following non-delivery of the contractually due goods or services. There must be a contractual obligation to pay damages or repay an advance payment upon non-delivery by the Supplier.

Policy tenors are in general up to five years depending upon amongst other things the country of risk and the creditworthiness of the counterparty. However, in certain circumstances policy terms can be obtained for transactions of seven to ten years.

In all cases, the Insured must retain part of the risk of non-performance on its books without any further hedging or additional insurance arrangements. This minimum self-retention would typically be 10% of any exposure, though it can be higher or lower.