Insurance Backed Guarantees - Are they still worth it for home improvements in 2023?
20 Jan 2023
Are you looking for an insurance backed guarantee? Learn why you need them and how they can protect you now and in the future.
Providing peace of mind and protection against insurance claims is necessary for the construction industry. It is valuable protection for tradespeople and their customers. Insurance-backed guarantees are used throughout the industry for both residential and commercial properties. These insurance policies let the owner or buyer of the building know that a comprehensive insurance policy covers the construction works.
Let’s learn more about insurance back guarantees and why they are a good idea.
What is an insurance back guarantee?
An Insurance Backed Guarantee increases consumer confidence, as it gives homeowners the trust they are protected in the unlikely event of your company ceasing to trade. Suppose it is due to the liquidation or receivership. In that case, administration or winding up of your business due to bankruptcy, state retirement or death of the principal(s), or the company no longer exists. Any faults appearing after they cease to trade may be covered by the Insurance Backed Guarantee. The Insurance Backed Guarantee is available for up to 10 years and is backed by a UK-authorised insurer.Who needs insurance-backed guarantees?
We’ve at the CPA have spent more than 25 years helping our members’ businesses succeed. One of the ways we do this is by providing Insurance Backed Guarantees (IBGs). In the construction and fenestration industries, consumers look for this guarantee when choosing a tradesperson. Customers want to ensure that their money and home are protected. Guarantee-backed insurance was always ‘best practice’, but since June 2014, all tradespeople MUST provide an Insurance Backed Guarantee with every glazing installation. Without an IBG, a finished project cannot be registered under self-assessment schemes. Trades and products that require an insurance-backed guarantee:• Air source and ground source heat pumps • Alarms • Bathroom suppliers and installers • Builders • Carpenters and Joiners • Contractors • Garage conversions • Garden buildings • Kitchen suppliers and installers • Loft conversions • Orangeries • Plumbing and Heating Engineers • Renewable energy • Roofers • Window, Door, and Conservatory InstallersWe provide tradespeople insurance for the above trades. We can still cover you if you’re not on the list. Contact the CPA team today to see if we can offer you IBG insurance.