Insurance Backed Guarantees
Protect construction and home improvement projects with long‑term security. Insurance Backed Guarantees ensure the contractor’s warranty remains valid even if they cease trading.
What is an Insurance Backed Guarantee?
An Insurance Backed Guarantee (IBG) is an insurance policy that supports the written workmanship guarantee provided by a contractor or installer.
If the contractor ceases trading, becomes insolvent, or cannot honour their guarantee, the policy enables the property owner to make a claim for defects covered under the original guarantee.
This ensures protection remains in place for the full guarantee period, typically up to 10 years depending on the installation.
How Does an Insurance Backed Guarantee Work?
1. Work Completed
The contractor completes installation or construction work and provides a written guarantee.
2. Insurance Policy Issued
An insurance policy is arranged backing the contractor’s guarantee.
3. Guarantee Period
The work is covered for the agreed guarantee period, often up to 10 years.
4. Contractor Ceases Trading
If the contractor stops trading during the guarantee period the policy can respond.
5. Claim
Process
The property owner can make a claim under the insurance policy for remedial works.
Benefits of Insurance Backed Guarantees
- Protection for Property Owners - Ensures guarantees remain valid even if the contractor ceases trading.
- Greater Buyer Confidence - Provides reassurance for property buyers, lenders and investors.
- Long-Term Cover - Policies often provide protection for up to 10 years depending on the installation.
- Professional Credibility - Contractors offering IBGs demonstrate reliability and professionalism.
Who Needs an Insurance Backed Guarantee?
Homeowners
Protect home improvement projects and renovations.
Contractors
Offer additional reassurance to customers and strengthen tenders.
Developers
Provide buyers and lenders with confidence in completed installations.
Housing Associations
Ensure refurbishment works are supported by insurance protection.
Works That Can Be Covered: Roofing installations Basement waterproofing Damp proofing systems Timber treatments Windows and glazing Solar panel installations Structural repairs Wall coatings and insulation
Insurance Backed Guarantee vs Structural Warranty
IBG:
- Protects contractor workmanship guarantees
- Commonly used for home improvements
- Often covers installations like roofing or damp proofing
- Usually up to 10 years
Structural Warranty:
- Protects structural elements of a building
- Typically used for new build properties
- Covers major structural defects
- Typically 10 year structural cover
Why Choose Advantage?
Advantage specialises in construction and property related insurance solutions across the UK. Our Insurance Backed Guarantees are designed to support contractors, developers and property professionals with reliable long‑term protection.
· Fast quotation turnaround
· UK‑wide coverage
· Flexible policy structures
· Specialist construction insurance expertise
Frequently Asked Questions (FAQ’s)
How long does an Insurance Backed Guarantee last?
Most policies provide cover for up to 10 years, depending on the type of installation.
What happens if the contractor stops trading?
If the contractor ceases trading during the guarantee period, the insurance policy allows the property owner to make a claim for covered defects.
Who arranges the Insurance Backed Guarantee?
Typically the contractor or installer arranges the policy to support the workmanship guarantee provided to the customer.
Are Insurance Backed Guarantees required?
They are not legally required but are widely used to provide additional protection and reassurance for property owners and buyers.
Request an Insurance Backed Guarantee Quote
Request an Insurance Backed Guarantee Quote
Speak with our team today to arrange the right protection for your project.