An Insurance Backed Guarantee (IBG) is useful protection for both you and your customers, in the unlikely event of your company ceasing to trade.

An Insurance Backed Guarantee raises a customer’s confidence, as property owners will know that they are protected should your business close. If, due to the liquidation, receivership, administration or winding up of your business due to bankruptcy, state retirement or death of the principal(s), the company no longer exists, faults appearing after they cease to trade may be covered by the Insurance Backed Guarantee. The Insurance Backed Guarantee we can provide will protect your work for a period up to 10 years and is backed by a UK authorised insurer.

As a contractor, this benefits your customer by giving them peace of mind that should you cease to trade, your insurer will honour any bona-fide claims under the original guarantee, for the remainder of the guarantee period. Cover is usually for up to 10 years is often stipulated in contracts, but other periods (longer or shorter) can be considered. Almost any kind of work can be covered under an Insurance Backed Guarantee, including:

General Building Works – Refurbishments & Conversions – Concrete repairs – External and internal wall insulation – Roofing, including solar panels and cladding – Car parks – Flooring contractors – Retaining walls – Basements – Underpinning – Window, door & conservatory installers – Carpenters & Joiners – Alarms – Left conversions – Plumbing & Heating Engineers – Waterproofing

Breach of Building Regulation Cover

Following changes made by the DCLG (June 2014) to its Conditions of Authorisation (COA), all licensed Competent Person Scheme Operators (CPS) now have to demonstrate that mandatory financial protection is provided to the homeowner on all domestic installations in the event the original contractor is unable to do so, for example if they have ceased to trade. The insurance provided must cover breach of building regulations for a minimum period of 6 years unless the product itself has a lesser manufacturer’s guarantee.

Adler Insurance Brokers are able to offer this cover with immediate effect to all contractors including glazing and roofing contractors to name but a few.

If you are looking to source similar covers please send us you details by clicking ‘Get A Quote’ from the orange box on this web page, providing as much information as you can supply together with your full contact details.

What are the benefits of our IBG scheme?
  • Direct access to underwriters to ensure quick quotations
  • Capacity to provide up to £10,000,000 worth of cover per site
  • Cover periods up to 10 years
  • Independent experts that specialise in Insurance Backed Guarantees
  • Bespoke guarantees for contractors
  • Cover both on a per job or annual turnover basis
Set out below are some real-life examples of our success in providing insurance cover direct from insurers that precisely met the clients’ needs:
  • Scenario 1: A Roofing Contractor needed an insurance cover to indemnify his customer in the event that the Contractor became insolvent during the guarantee period.
    Solution: We sourced an Insurance-backed Guarantee to underpin the contractor’s guarantee.
  • Scenario 2: A Contractor entering the ECO market asked us to source an insurance cover to meet OFGEM’s requirements for external cladding
    Solution: We provided the necessary IBG cover that complied with OFGEM’s criteria.
  • Scenario 3: A manufacturer of industrial fencing provides a 5 year warranty on its product but wished to take guarantee provisions off its balance sheet.
    Solution: We obtained the required protection for the full 5 years.
  • Scenario 4: Contractor in glazing and wall insulation industry requested a mandatory 6 year breach of building regulations cover.
    Solution: We provided a 6 year breach of building regulation cover.

The tabs below describe some situations where latent defects may become apparent and a business could benefit from an insurance backed guarantee.

The benefits to a contractor of supplying Insurance Backed Guarantees to their customers are that it:

  • Sets the contractors apart from competitors that cannot offer such a guarantee and demonstrates the quality of, and confidence in, the contractors’ product and workmanship
  • Enables the contractor to submit and win tenders on contracts where insurance backed guarantees are a requirement
  • Demonstrates the fact that the contractor has satisfied insurers as to the quality of their work
  • Provides vital protection and security for the building owner and their funder

When organising insurance backed guarantees, contractors also need to consider the limit of cover that the insurance backed guarantee will provide.

We are aware that there are currently provides of insurance backed guarantees that are looking to reduce limits issued to larger contractors.

At Adler Insurance Brokers, we have specialists with knowledge of this sector and we can react very quickly to ensure that contractors meet deadlines and contracts.

We have experience in working with insurers to provide solutions for contractors and building owners. We are aslo equipped to deal with large limits, often far larger than are generally available in the insurance backed guarantee market.


You could benefit from an insurance backed guarantee if you are:

  • Building a house or commercial premises to occupy, sell or let
  • Finishing construction work where the original contractor/architect went bust
  • Making structural alterations or repair work to a business premises
  • A new construction firm or one who cannot satisfy a warranty provider’s requirements

You could benefit from an insurance backed guarantee if you are:

  • Buying or selling a house less than 10 years old without NHBC type guarantee
  • Buying or leasing back commercial premises built in the last 10 years
  • Buying newly built or altered premises from liquidators/receivers
  • Signing full repairing leases on any property built or structurally altered in the last 10 years without a building guarantee
  • Putting newly built premises into a pension fund, i.e. SIPPs or SAPPs

Contruction managers – you could benefit from an insurance backed guarantee if you are:

  • Being asked to sign collateral warranties or having contractual issues regarding the construction or sale of newly built or structurally altered premises
  • Having properties built or altered where someone involved in the build process has gone into liquidation thereby invalidating any warranties
  • Buying premises where the permitted number of assignments has already been reached/exceeded
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