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Insurance Backed Guarantees

Construction projects don’t end when the work is complete. Years later, defects can emerge, contractors may no longer be trading, and property owners still need confidence that qualifying work is protected.

Protection that lasts beyond practical completion

An Insurance Backed Guarantee provides additional protection if a contractor or installer can no longer honour their workmanship guarantee, helping protect completed projects and providing reassurance for property owners and future purchasers.

Common challenges our clients face

Contractor insolvency

If a contractor or installer ceases trading, their original workmanship guarantee may no longer provide the protection your client expects.

Defects that emerge over time

Some issues only become apparent months or years after completion, creating unexpected repair costs and disruption.

Meeting contractual requirements

Many projects require Insurance Backed Guarantees to satisfy the requirements of developers, main contractors or building owners.

Protecting future owners

Where properties change hands, transferable protection can provide continued reassurance for future owners and occupiers.

How we support you

With specialist experience across construction warranties backed by a global network, we help you understand the requirements of the contract, the original workmanship guarantee and the protection available, arranging cover that reflects the work completed and the parties involved.

  • Specialist Insurance Backed Guarantee expertise
  • Access to established warranty providers and insurers
  • Cover tailored to the work and contractual requirements
  • Support from initial enquiry through to placement

Here to help

Frequently asked questions

What is an Insurance Backed Guarantee?

An Insurance Backed Guarantee is an insurance policy that supports a contractor’s or installer’s original workmanship guarantee. It may respond if the contractor ceases trading and is unable to complete repairs that would otherwise have been their responsibility.

How does an Insurance Backed Guarantee work?

The IBG sits behind the contractor’s written guarantee. If a qualifying problem arises and the contractor is no longer trading, the policy may cover eligible repair or replacement costs, subject to its terms, conditions and exclusions.

Who can benefit?

Insurance Backed Guarantees may be relevant to:
  • Property developers
  • Property owners
  • Main contractors
  • Subcontractors
  • Installers and approved installers
  • Project managers, architects and structural engineers
  • Funders

How long does an Insurance Backed Guarantee last?

Insurance Backed Guarantees commonly provide protection for 10 to 12 years, although the period will depend on the provider, the underlying guarantee and the policy arranged.

What types of work can be covered by an Insurance Backed Guarantee?

Cover may be available for specialist works including basements, tanking, structural waterproofing, piling, external cladding, insulation and flat or pitched roofing. The precise scope of cover will depend on the policy.

Is an Insurance Backed Guarantee the same as the contractor’s guarantee?

No. The contractor’s guarantee is provided by the contractor or installer. An Insurance Backed Guarantee is separate insurance that supports that guarantee if the contractor can no longer meet its obligations because it has ceased trading.

Can an Insurance Backed Guarantee transfer to a new owner?

Cover may be transferable to future property owners, helping maintain protection when the property is sold. Transfer arrangements depend on the policy terms.

When should an Insurance Backed Gurantee be arranged?

It should be considered when the original guarantee is being agreed and before the relevant works are completed. Contractual requirements and provider criteria should be checked early, as cover may be more difficult to arrange retrospectively.

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