An insurance-backed guarantee (IBG) is a form of consumer financial protection that can be provided by installers. The IBG underpins the installer’s own workmanship warranty and is an extra level of protection for the homeowner when handing over their hard-earned cash or receiving government funding. 

An insurance-backed guarantee is a cease-to-trade policy. It is taken out for the duration of the installer’s own workmanship warranty. As such, if there is a problem with the installation and the installer is no longer trading, then the homeowner still has the opportunity for remedial works, claimable through the policy. 

This can help save the homeowner money on repair bills, but also gives them added peace of mind and confidence when work is completed.

While most installers are likely to think they do the best job possible and treat each homeowner and the installs with the highest level of professionalism, circumstances can change quickly. Altered financial circumstances, retirement, or illness may not have been considered when securing a job but that doesn’t help the homeowner when the installer is no longer around. And they are often left picking up the pieces. 

An insurance-backed guarantee helps to glue these back together, providing additional protection and peace of mind to the homeowner. 

With the world still in a state of flux following a pandemic, war, and the knock-on effect these have had on the economy, homeowners are feeling the pinch, and considering the expenditure of home improvements more carefully. 

The added security offered by an insurance-backed guarantee may be the difference between signing on the dotted line or not. 

While IBGs are on the rise, they are still a relatively unknown entity within the installer community. Many installers, sometimes with over 30 years of experience, have never heard of IBGs and lose quotes due to their failure to provide the extra reassurance the homeowner wants. 

With a relatively inexpensive price point, having it in your back pocket, ready to go, is a great way to enhance the service offered during the quotation stage. For the sake of a few of quid, the insurance-backed guarantee can pay for itself multiple times over by helping to the client’s decision process.

But, how much does it really cost? To give an example, a two year insurance-backed guarantee on a new boiler install would cost a mere £16.80, to cover a maximum contract value of £50,000. No subscription fees, no monthly charges, just one simple cost. Often installers add this into the overall quote too, so it doesn’t cost them a penny. 

Choosing the right IBG provider to go with is, of course, important. Prices can differ, as can the various terms of business (such as monthly fees, subscription fees, onboarding costs, etc.) Therefore a little research to find the one that suits best can go a long way.