Insurance Backed Guarantee

What does an Insurance Backed Guarantee cover?
If a fault is discovered in the original works after the contractor has ceased trading for particular reasons such as liquidation, receivership, administration or the winding up of the business owing to the bankruptcy, state retirement or death of the Principal(s) and the contractor is unable to honour their guarantee then a claim should be intimated. The Policy Holder would be asked to complete a simple claim form and a report would be prepared by another contractor to determine the cause of the problem. If the fault falls under the terms of the original contractor’s written guarantee then the Insurance Backed Guarantee would meet the reasonable cost of rectifying the defects up to a limit of the original contract price. On certain occasions, the insurance may also meet certain breaches in Building Regulations, although each Policy Holder will be provided with a policy summary and full Policy of Insurance.

What is the Policy Term?
Usually the policy term is linked to the number of years guaranteed by the contractor, which for many trades is up to 10 years and the cover commences from the date the contract is satisfactorily completed.

Is the cover transferable?
If the contractor’s written guarantee states that it is transferable to subsequent owners of the property then the insurance cover will also transfer automatically to the new owner.

Who protects me?
The Insurance is underwritten by Guarantee Protection Insurance Limited or Millburn Insurance Company Limited.