As a tradesperson, you may be required for regulatory reasons to provide insurance with the guarantees you are giving to your customers.
In order to comply with this requirement, you will need to ensure you are registered with an appropriate provider who will enable you to provide the appropriate warranty insurance. But what exactly is Warranty Insurance and what are IBG’s?
What is Warranty Insurance?
Warranty Insurance is a specialised form of insurance that insures guarantees issued by installation businesses against these businesses ceasing to trade. Warranty Insurance policies are also known within the industry as Insurance-Backed Guarantees (or IBGs)
and are only available through a number of specialised providers.
What is an IBG?
As referenced above, Warranty-Insurance
policies are also referred to as IBGs and are insurance policies that cover the guarantees provided by an installing contractors in the event that they cease to trade. If the original supplier of the guarantee ceases to trade (as defined in the policy Terms and Conditions) – and is therefore unable to honour their old guarantee – the policy effectively ‘stands in place’ for the remaining period of the original guarantee, reflecting the terms of the guarantee.*
Who provides the guarantee?
The written guarantee (or warranty) is your document that should be provided to your customer at the point of completion of the contract. It is your promise to your customer to resolve issues that may occur with the installation after the event of completion.
It is this guarantee that is the subject of the Warranty Insurance policy - the policy will reflect the terms of your guarantee*.
What are the benefits of an IBG?
Insurance-backing for guarantees is becoming increasingly recognised within the home improvement industry as providing additional peace-of-mind for homeowners. Long-term guarantees for costly works are only valid whilst the guarantee-issuing business continues to trade - a guarantee insurance policy gives customers additional recourse in the event that their original contractor fails.
Please note that cover is subject, at all times, to the Terms & Conditions of the insurance policy.
Learn more about Warranty Insurance by visiting our Products and Schemes
page. If you are interested in becoming a member, simply contact GGFi on 0207 645 3744
for an application pack.
*Subject to the terms & conditions of the policy provided