What is an IBG?

An IBG, or insurance backed guarantee, is an insurance policy that provides cover for a guarantee in the event the company that issued the guarantee ceases to trade.

IBGs are not guarantees themselves but insurance products that back guarantees. For this reason it can be more useful to refer to them as guarantee insurance policies or warranty insurance policies.

A guarantee insurance policy provides cover in the event that a company that has given a guarantee to a customer ceases to trade. If there is subsequently a problem with the installation that would otherwise have been resolved by the installer’s guarantee, a claim can be submitted to the IBG provider (assuming the homeowner in question has a policy).

How do IBGs work for replacement window and door installations?

A guarantee insurance policy is taken out on a replacement window or door installation by the installer on behalf of the property owner.

While the installer pays for the policy, the property owner becomes the policyholder.

When you register with GGFi all you need to do is notify us when an installation is complete. We’ll then issue the IBG policy on your behalf in the name of the property owner.

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What does an IBG cover?

A guarantee insurance policy replicates the terms of the original guarantee given to the homeowner by the installer. It is a form of indemnity insurance, designed to restore the policyholder (the homeowner) to the position they were in prior to the loss occurring.

Note: If something isn’t covered by the installer’s original guarantee it won’t be covered by the guarantee insurance policy either.

A note about exclusions

IBGs may also include exclusions in their terms and conditions which set out the circumstances under which a claim would not be approved.

We recommended policyholders review these terms thoroughly to familiarise themselves with the cover they have in place.

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When is an IBG activated?

A guarantee insurance policy is activated in the event that (a) the installer ceases to trade and (b) there is a problem with the installation that would otherwise have been resolved by the installer’s guarantee.

At this stage a claim may be submitted by the property owner not to the installer but to the IBG provider (e.g. GGFi).

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Do I have to provide IBGs to my customers?

If you are registered with (or wish to join) a Competent Person Scheme such as FENSA and the work you are carrying out falls within the remit of the scheme, a guarantee insurance policy must be provided along with a building regulations compliance certificate (e.g. a FENSA certificate).

If you aren’t sure whether an installation you are carrying out meets these requirements, we recommend contacting the scheme in question to confirm this.

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I have previously been declared bankrupt and/or have been involved with failed businesses. Can I still sign up with GGFi?

By necessity we must vet each applicant to assess their risk profile. A history of bankruptcy and/or failed businesses will affect that profile, however we appreciate that each company is different and no situation is black and white. We do our utmost to provide cover to as many businesses as we can.

If you have any questions we encourage you to get in touch to discuss your GGFi application. Give us a call between 9am and 5pm on 020 7645 3744 or email our team at applications@ggfi.org.uk.

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How much do IBGs cost?

How much you pay for guarantee insurance policies can vary and will depend on the contract value of the works carried out and the type of works installed.

IBGs can start from as little as £10 plus IPT (insurance premium tax) per window/door installation.

> Pricing guide for GGFi guarantee insurance policies

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What do I need to do to sign up with GGFi?

Joining GGFi is quick and easy. Start by filling out the online GGFi application form. Our team will then be in touch to outline the next steps.

Have a question we haven’t answered here?

The GGFi team is on hand to answer any questions you have about GGFi and about guarantee insurance in general. Give us a call between 9am and 5pm on 020 7645 3744 or email applications@ggfi.org.uk.