Insurance Backed
Guarantees
Delivering peace of mind to our clients’ clients
An Insurance Backed Guarantee (IBG) is an 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
Offers peace of mind to the contractor and product & workmanship
Provides additional security incase of contractor insolvency
Limits the possibility of lenders saying “no” on a mortgage or refinancing case.
Provides protection and security for the owner & funder.
Enhances tender applications where an IBG is a requirement
Enables the policy holder to benefit from all aspects of their latent defect policy
Insurance Backed Guarantee Case Study
Case Summary
Challenge
Solution
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.
We see our role as an independent advisor who reviews the merits of each policy to help our clients make well informed decisions.
We are now established as the UK property markets go-to broker for construction insurance and finance.
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.
