The policy then provides security for the monies paid over while their craft is being built. Stage payment can be covered as well as deposits.

The policy covers insolvency of the boat manufacturer, offering the sales agent protection for the paid before obtaining title. All UK legal forms of insolvency are covered, including administration, administrative receiver and corporate voluntary arrangement.

'This product will plug a gap in the market,' said Amlin risk director Ray Massey. It's always been possible to buy insurance based on the buyer going out of business, but it has not been so easy to get cover for the supplier going under.'

The product will give the buyer's agent the security of knowing his clients will not be out of pocket if they have made payments on a product that doesn't materialise, he added.