IBG

Insurance Backed Guarantee (IBG)

What is an Insurance Backed Guarantee?

An Insurance Backed Guarantee (IBG) gives customers added peace of mind by protecting the original guarantee issued by their installer or contractor. If that business were to cease trading, the IBG ensures the customer can still make a valid claim — even years later.

IBGs are commonly issued for terms of one to ten years and are a smart way to build trust, reduce risk, and meet client or lender requirements.

What Types of Work Can Be Covered?

If a contractor issues a written guarantee, there’s usually an option to arrange an IBG to support it. Common examples include:

Why Choose an Insurance Backed Guarantee?

For contractors, an IBG is a clear sign of professionalism and quality. It demonstrates that your work is built to last — and backed by insurance, not just a promise.

It’s also a growing requirement. Building owners and lenders increasingly ask for IBGs as part of wider structural warranty conditions, especially on high-value or specialist work.

Learn More About Insurance Backed Guarantees

What is an Insurance Backed Guarantee (IBG)?

An Insurance Backed Guarantee is a policy that protects a contractor’s written guarantee, offering peace of mind to customers. If the contractor goes out of business, the IBG ensures that the original guarantee can still be honoured.

How long does an IBG last?

IBGs typically run for between one and ten years, depending on the agreement and the type of work involved.

Why should contractors offer an IBG?

Offering an IBG helps contractors stand out from competitors and demonstrates confidence in the quality of their work. It can also meet structural warranty or lender requirements.

When is an IBG required?

Sometimes an IBG is stipulated by the building owner as part of a warranty provision, or requested by a lender to protect their financial interest.

What types of work can be covered by an IBG?

Most works can be covered — as long as the contractor has issued a written guarantee. Common examples include piling, tanking, roofing, drainage, cladding, and damp proofing.

Can a customer still make a claim if the contractor ceases trading?

Yes, that’s exactly what the IBG is designed for. If the contractor is no longer in business, the insurance will respond under the terms of the original guarantee.

Can’t find the answer to your question? Visit our Frequently Asked Questions page.

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