Delivering peace of mind to our clients’ clients
An Insurance Backed Guarantee (IBG) is a guarantee offered by an insurer that will honour the terms of a warranty that was issued by the contractor. This offers peace of mind to all parties that if there are any defective works or the contractor ceases to trade, the insurer will honor any valid claims.
The terms offered by insurance providers for latent defect insurance are becoming more stringent and as a result, will require developers to arrange additional cover to benefit fully from the policy. We are seeing a rise in the requirement for insurance backed guarantees (IBG’s) with the onus being on developers to arrange insurance backed guarantees for flat roofs, tanking and underpinning.
Insurance Backed Guarantee Benefits
Insurance Backed Guarantee Case Study
We secured terms for our client to put an insurance backed guarantee in place for 11.5 years. The strength of the contractor played a vital element, as this is a risk is based upon the contractor being solvent for the period of the IBG.
We placed this IBG before works commenced, securing the best possible commercial terms, whilst these can be obtained retrospectively this tends to be additional expense.
If you need to obtain an insurance back guarantee, speak with one of our experience advisors who can solve the problem for you.
Our ethos is based around outstanding customer service. Obtaining specialist property insurance can be an arduous process. We take away that pain by managing the process for our clients and ensuring they receive the most appropriate and commercially attractive solutions.