Insurance Backed Guarantees (IBGs) provide valuable protection, for either 2, 6 or 10 years from the date of completion, for contractors undertaking client home improvement projects, from roofing works and internal refurbishments to loft conversions and extensions.
An Insurance Backed Guarantee is an insurance policy designed to protect the homeowner against workmanship defects in the insured works, where the contractor has ceased trading and is unable to honour their written guarantee.
What does an IBG cover?
If a defect is discovered in the insured works after the contractor has ceased trading, it falls under the terms of the original contractor’s written guarantee and the terms of the Policy of Insurance, then the IBG would meet the reasonable cost of rectifying the defects up to a limit of the original contract price.
Benefits of providing an IBG
By providing an IBG to your clients, you’ll build a stronger, more robust aftersales package for consumers, building trust. This insurance policy provides peace of mind to your clients in case of unexpected financial or company changes, retirement or illness - things that may not have been considered when securing the job. It offers assurance to the client that your written guarantee will be honoured even if, in the unfortunate event, you cease trading or retire.
What type of works can be covered?
FMB Insurance's can provide IBG's on a wide range of home improvement projects, including:
- General Building
- Loft conversions
- Damp / Timber Treatments
- Local Authority Grant Works
Whatever changes your client wants to make to their property, they can benefit from an Insurance Backed Guarantee to give them full protection on their investment, after completion.
IBG Contractor FAQs
What length of IBG do you offer?
FMB Insurance can offer Insurance Backed Guarantees for either 2, 6 or 10 years, which will run from the date of completion of works.
What does cease to trade mean?
Ceased Trading means ceasing to trade by reason of Liquidation, Receivership, Administration, Strike-Off or Dissolution in respect of a Limited Company, Bankruptcy, Retirement, total incapacity or death of the principal(s) in the case of a Sole Trader or Partnership, or any other reason where suitable proof can be exhibited to the Insurer to confirm that the Contractor is no longer trading in any shape or form.
Is this policy accepted by the NIHE?
Yes, the Northern Ireland Housing Executive accept our 2 year IBG for works they are funding. A full list of NIHE approved FMB member builders can be found here
How much is the excess?
The excess for our Insurance Backed Guarantee is £50.