What is an Insurance Backed Guarantee (IBG)?
Interested in an Insurance Backed Guarantee? Read our guide on where they can be used, how they work and how Compariqo can help you with one for your upcoming or ongoing projects.
An Insurance Backed Guarantee (IBG) is a type of financial guarantee that provides assurance to customers or clients that they will be compensated if a product or service fails to meet certain specified criteria or if the supplier fails to fulfill their contractual obligations.
An IBG is essentially a form of insurance that protects the customer or client against financial losses resulting from defects, non-performance, or other failures.
In an Insurance Backed Guarantee, an insurance company acts as a guarantor for the supplier or service provider. The insurance company issues a guarantee certificate to the customer or client, which outlines the terms and conditions of the guarantee and If the supplier fails to meet their obligations or if the product or service is defective, the customer can make a claim to the insurance company for compensation.
Here’s how it typically happens:
1. Agreement: The buyer and seller enter into a contract or transaction where a guarantee is required. This can include construction projects, home improvements, or the purchase of high-value goods.
2. Guarantee: The seller or contractor offers a guarantee to the buyer to ensure the performance or quality of the product or service. This guarantee may involve aspects such as workmanship, materials, or structural integrity.
3. Insurance Coverage: To back up the guarantee, the seller or contractor obtains an insurance policy from an insurer. The insurer agrees to cover the financial obligations outlined in the guarantee if the seller or contractor fails to meet them.
4. Claim Process: If the buyer experiences a problem covered by the guarantee, they can file a claim with the insurer. The claim will be evaluated to determine if it meets the terms and conditions specified in the guarantee and the insurance policy.
5. Financial Compensation: If the claim is approved, the insurer will provide financial compensation to the buyer, typically up to the limits specified in the insurance policy. This compensation can help cover the cost of repairs, replacement, or rectifying the issues outlined in the guarantee.
Insurance Backed Guarantees are commonly used in various industries such as construction, home improvement, and manufacturing. They offer peace of mind to customers by providing financial protection and recourse in the event of problems or failures.
It is important for customers to carefully review the terms and conditions of an IBG before entering into a contract or making a purchase to understand the extent of coverage and any limitations or exclusions that may apply.
Which types of work can an IBG cover?
Many house builders typically use an Insurance Backed Guarantee to cover what are considered high-risk areas by warranty providers such as basements and flat roofs. However, there are many other types of work and professions which can use an IBG, such as:
- Window, Door & Conservatory Installers
- Carpenters & Joiners
- Plumbing & Heating Engineers
- Air source and ground source heat pumps
- Bathroom suppliers & installers
- Kitchen suppliers & installers
- Garden buildings
- Garage conversions
- Loft conversions
- Basement conversions
Yes, Compariqo can offer you an instant quote on Insurance Backed Guarantee cover. Simply visit our IBG quoting form, and we can get your started today.
Regalia Homes Kent Ltd
“From our first contact Compariqo’s communication was excellent. Their requirements were clear and precise and our reply’s actioned immediately, resulting in the issue of a new home warranty, problem free.
Scott was always professional yet friendly, and should the need arise we would not hesitate to use their services again.”
“I approached Compariqo as they offer a broader choice in the market place when it comes to structural warranties. The service was fast and efficient and I would recommend them to other companies needing to source a structural warranty for a new development.”
Developer, Taunton, Somerset
“After struggling for weeks with numerous brokers to find a provider for my structural warranty policy, Alex and Compariqo took complete control of the situation and sourced me a policy which enabled me to complete my remortgage. Alex in particular was excellent and kept me updated regularly. I would highly recommend Compariqo!”
“I used Compariqo after being let down by another company. Alex Flexman dealt with all my enquiries and helped me constantly through all aspects of the service. He was extremely helpful and very professional throughout the process. I would highly recommend Alex and Compariqo to any of my associates needing structural warranties.”
“If you are looking for a one stop shop solution to out of the box and standard borrowing then Compariqo Finance covers it all. Where other lenders have tried and failed Compariqo Finance will find a solution. The level of service from Thomas Naidu and colleagues is second to none. I am so grateful for their effort in finding a bespoke lender, and never gave up until we found what I needed for my complex situation. I have never had such a good experience in 25 years in the business. Thank you so much.”
“I contacted Jacqui to compare quotes on warranty companies for the conversion of the existing house into three flats. The flats all have separate entrances and the basement level has a lightwell. I found Jacqui to be very forthcoming with information, updating me regularly with correspondence she had received from the warranty companies and a delight in general to talk to. We now go to compariqo for comparisons for all warranty companies on any new developments we have coming up.”
Wow thank you for sorting this so promptly. You have saved me a lot of time & anxiety.
CSCL DEVELOPMENTS LTD
Excellent, prompt service and we will definitely be using you again during our next build. Both Steve and myself were impressed from our initial contact with Jaimie through to completion.
Jaimie explained in detail the insurance suitable and immediately emailed the contract for us to read. No sales pressure and responded when answers were required.
So, thank you again to you and your team at Compariqo.
Sandra and Steven Page