Insurance Backed Guarantees for Contractors & Developers
Peacock Insurance arranges Insurance Backed Guarantees (IBGs) for UK contractors, builders and developers, helping protect your clients and meet lender, structural warranty provider and tender requirements.
- ✓ Insurance Backed Guarantees for a wide range of work types
- ✓ Guarantee periods of up to 25 years may be available
- ✓ Retrospective IBGs can also be considered
Insurance Backed Guarantee Guide
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What is an Insurance Backed Guarantee?
An Insurance Backed Guarantee provides an additional layer of protection behind a contractor's own written guarantee, helping give property owners, developers and other interested parties greater confidence in qualifying building and improvement works.
Insurance protection behind the contractor's guarantee
When a contractor completes qualifying work, they may issue their customer with a guarantee covering that work for a stated period. An Insurance Backed Guarantee (IBG) is an insurance policy designed to sit behind that original guarantee.
Depending on the policy terms and the circumstances of a claim, the IBG can provide protection where the original contractor is no longer able to honour its guarantee, for example following the contractor ceasing to trade.
IBGs are commonly used across the UK construction and property improvement sectors and may be requested by homeowners, developers, lenders, structural warranty providers, local authorities, funding bodies or other parties involved in a project.
The exact scope, duration and circumstances in which an Insurance Backed Guarantee responds will depend on the insurer, work type and individual policy wording.
What does an IBG protect?
An IBG provides insurance protection connected to the contractor's qualifying guarantee. The precise protection provided depends on the policy wording, insured works, guarantee period and circumstances giving rise to a claim.
Why might an IBG be required?
Insurance Backed Guarantees may form part of a lender, structural warranty, funding, tender or contractual requirement. Contractors may also offer them voluntarily to provide their customers with additional reassurance.
Who can arrange an IBG?
IBGs can be arranged for eligible contractors and construction businesses across many specialist and general trades, subject to the insurer's underwriting requirements and the type of work being guaranteed.
Cover is subject to insurer acceptance, policy terms, conditions, exclusions and the qualifying contractor guarantee. Peacock can help you understand the cover available for your particular work type and requirements.
Need an Insurance Backed Guarantee for your work?
When is an Insurance Backed Guarantee required?
An Insurance Backed Guarantee may be requested as part of a construction contract, property transaction, funding arrangement or warranty requirement. The exact requirement will depend on the work, project and organisation requesting the guarantee. Peacock can help contractors and developers establish what Insurance Backed Guarantee protection may be suitable.
Mortgage lenders and development finance
A mortgage lender, development lender or funding provider may ask for evidence of suitable guarantee protection before lending against a property or funding a project. The precise insurance and warranty requirements should always be checked with the party providing the finance.
Structural warranty providers
A structural warranty provider may require an Insurance Backed Guarantee for particular elements of work before accepting or completing its warranty arrangements. This can arise where specialist contractors undertake roofing, waterproofing, groundworks, cladding or other qualifying works.
Tenders and contractual requirements
Developers, principal contractors, local authorities, commercial clients and other organisations may include Insurance Backed Guarantee requirements within a tender or construction contract. Arranging the required protection can therefore form part of the contractor's obligations before or after the work is completed.
Providing additional reassurance to clients
An IBG does not always have to be imposed by another organisation. Eligible contractors may choose to offer Insurance Backed Guarantee protection alongside their own written guarantee to provide customers with additional insurance protection, subject to the terms of the policy.
Can you arrange a retrospective Insurance Backed Guarantee?
In some circumstances, a retrospective Insurance Backed Guarantee can be considered for qualifying work that has already been completed where an IBG was not put in place at the time. The insurer will normally need sufficient information about the contractor, completed work and underlying guarantee before deciding whether cover can be offered.
Lenders, warranty providers, clients and other organisations can have different requirements. Insurance Backed Guarantee cover is subject to insurer acceptance and the applicable policy terms, conditions and exclusions. If another party has specifically requested an IBG, provide Peacock with their requirements so suitable cover can be considered.
Been asked to provide an Insurance Backed Guarantee?
Tell us about the work and the requirement and our team can help establish the Insurance Backed Guarantee options available.
Insurance Backed Guarantees for a Wide Range of Construction Work
Peacock can arrange Insurance Backed Guarantees for many specialist and general construction trades. The availability, duration and scope of cover will depend on the contractor, work being guaranteed and the insurer's underwriting criteria.
Roofing Insurance Backed Guarantees
IBG protection may be available for qualifying roofing works, including specialist roofing installations and refurbishment projects where a contractor guarantee requires suitable insurance backing.
Damp Proofing & Timber Treatment IBGs
Insurance Backed Guarantees can be considered for eligible damp proofing, timber treatment and associated remedial works where the contractor provides an underlying written guarantee.
Structural Waterproofing & Basement IBGs
Cover may be available for qualifying structural waterproofing, basement tanking and below-ground protection systems where long-term guarantee protection is required.
Cladding & Facade Insurance Backed Guarantees
Insurance backing may be considered for qualifying cladding, facade and external envelope works, subject to the construction method, materials, contractor and insurer acceptance.
Groundworks, Piling & Underpinning IBGs
Suitable Insurance Backed Guarantees may be considered for specialist groundworks, piling, underpinning and drainage works where an insurable contractor guarantee is in place.
Structural Works Insurance Backed Guarantees
Certain qualifying structural and subsidence remediation works may be suitable for IBG protection, subject to the nature of the work and the insurer's underwriting requirements.
Glazing Insurance Backed Guarantees
IBGs can be considered for eligible glazing and related installation works where the contractor provides an appropriate guarantee and meets the insurer's criteria.
Solar Panel & Renewable Energy IBGs
Insurance Backed Guarantees may be available for qualifying solar panel and renewable energy installations where insurance backing is required behind the installer's guarantee.
General Building Works IBGs
A range of qualifying general building works may be considered for Insurance Backed Guarantee protection, depending on the work undertaken and the insurer's acceptance criteria.
Other work types we can consider
This is not an exhaustive list. If your trade or project is not shown, speak to Peacock about the type of work and guarantee you need to insure.
All Insurance Backed Guarantees are subject to insurer acceptance and the applicable policy terms, conditions and exclusions. The insurer may consider the contractor, experience, work type, value, guarantee wording and other underwriting information before offering cover.
Need an IBG for a particular type of work?
Tell us about your trade, the work being guaranteed and any lender, warranty or contractual requirement.
How Does an Insurance Backed Guarantee Work?
Arranging an Insurance Backed Guarantee does not need to be complicated. Peacock works with contractors and construction businesses to understand the guarantee required, obtain the information needed by the insurer and arrange appropriate Insurance Backed Guarantee protection where cover is available.
Tell us about your business and the work
Start by telling Peacock about your business, trade and the type of work for which you need an Insurance Backed Guarantee. If a lender, structural warranty provider, client or other party has specified a requirement, provide those details too.
Contractor and work information is reviewed
Information about the contractor and proposed work is considered against the insurer's underwriting criteria. This can include the contractor's experience, trading history, nature of the work and the guarantees being provided to customers.
The contractor's guarantee is established
The IBG is designed to provide insurance protection behind an eligible underlying contractor guarantee. The guarantee wording, duration, work being guaranteed and other relevant details may therefore need to be established before insurance protection can be arranged.
The insurer considers the risk
The insurer assesses the information provided and decides whether Insurance Backed Guarantee protection can be offered and on what terms. Additional information may be requested where necessary before a decision can be made.
The Insurance Backed Guarantee is issued
Once the required information has been accepted and the relevant requirements have been satisfied, an Insurance Backed Guarantee certificate can be issued for the qualifying works. Same-day certification may be available for eligible cases.
Insurance protection continues for the guarantee period
Subject to the terms of the policy, the Insurance Backed Guarantee remains in place for the insured guarantee period and may provide protection in circumstances specified by the policy where the original contractor is unable to honour its qualifying guarantee.
A contractor guarantee supported by separate insurance protection
The customer receives the contractor's underlying guarantee together with the applicable Insurance Backed Guarantee documentation. This provides a clearly documented arrangement showing the original contractor guarantee and the separate insurance protection supporting it, subject to the applicable policy terms.
The information required, underwriting process, available guarantee period and terms of cover will depend on the insurer, contractor, type of work and individual circumstances. Insurance Backed Guarantee cover is subject to insurer acceptance and the applicable policy terms, conditions and exclusions.
Ready to arrange an Insurance Backed Guarantee?
Tell us about your business and the work you need to guarantee and Peacock can help establish the Insurance Backed Guarantee options available.
Insurance Backed Guarantee vs Contractor Guarantee vs Structural Warranty
These terms are sometimes used together, but they describe different forms of protection. Understanding the distinction can help contractors, developers and property owners establish what documentation or insurance may be required for a project.
Insurance Backed Guarantee
Separate insurance designed to support an eligible contractor guarantee.
Insurance sitting behind an eligible contractor's guarantee.
Contractor Guarantee
The original written guarantee provided by the contractor for qualifying work.
The contractor's own written commitment relating to the work.
Structural Warranty
A separate form of protection generally associated with specified structural defects in qualifying developments.
Separate structural protection for a qualifying property or development.
An IBG can support a contractor guarantee without replacing it
The contractor guarantee, Insurance Backed Guarantee and any structural warranty should be considered as separate documents with different purposes.
An Insurance Backed Guarantee should not be assumed to replace a structural warranty, and a structural warranty should not be assumed to replace an IBG or the contractor's own guarantee. If a lender, warranty provider, client or other organisation has specified particular documentation, their exact requirement should be checked. Insurance cover remains subject to insurer acceptance and the applicable policy terms, conditions and exclusions.
Not sure which guarantee or protection you have been asked for?
Tell Peacock what has been requested and provide any lender, warranty provider or contractual requirements you have received. Our team can help establish the Insurance Backed Guarantee options available.
Why Choose Peacock for Insurance Backed Guarantees?
Insurance Backed Guarantees are a specialist area of insurance. Peacock combines access to specialist insurance markets with practical knowledge of contractor guarantees, construction trades and the requirements that can arise from lenders, warranty providers and commercial clients.
FCA Regulated
Peacock Insurance Services Limited is authorised and regulated by the Financial Conduct Authority.
Access to A-Rated Insurers
Access to specialist insurance markets enables us to consider a broad range of eligible IBG risks.
Same-Day Certificates May Be Available
For eligible cases where the required information and approvals are in place, certification may be available on the same day.
Practical Help Throughout the Process
From the initial enquiry through underwriting and certification, our team can help explain what is required at each stage.
Availability of cover, guarantee periods, certification times and insurer terms will depend on the individual contractor, work type, information supplied and insurer acceptance. Policy terms, conditions and exclusions apply.
Speak to Peacock about your Insurance Backed Guarantee requirement
Tell us about your business, the work being guaranteed and any lender, warranty or contractual requirement and we can help establish the IBG options available.
Insurance Backed Guarantees for Lender & Structural Warranty Requirements
Contractors and developers are sometimes asked to provide an Insurance Backed Guarantee as evidence of additional protection behind qualifying works. Requirements can differ between mortgage lenders, development funders, structural warranty providers and individual projects.
Why might a lender or warranty provider ask for an IBG?
Where specialist work forms part of a property or development, a lender, structural warranty provider or other interested party may want evidence that the contractor's written guarantee has suitable insurance protection behind it.
An Insurance Backed Guarantee can provide that separate insurance protection, subject to the insurer's acceptance and the applicable policy terms.
The exact requirement can depend on the nature of the work, property, funding arrangement, warranty provider and the organisation reviewing the project. Where you have been given a written specification or request, Peacock can use that information when considering the IBG options available.
What happens when a lender or warranty provider requests an IBG?
Providing the original requirement at the outset helps establish what Insurance Backed Guarantee protection needs to be considered.
Requirement received
A lender, warranty provider or other party specifies that guarantee or insurance evidence is required.
Requirement reviewed
Provide Peacock with the request or specification so the relevant IBG requirement can be understood.
Cover considered
The contractor, work and guarantee are considered against the insurer's underwriting requirements.
Certification issued
Where accepted and all requirements are satisfied, the applicable IBG documentation can be issued.
Information that may be relevant to the requirement
The information needed will vary, but the following can help establish whether suitable Insurance Backed Guarantee cover can be considered.
Type of work
Details of the construction, treatment, installation or specialist works being guaranteed.
Contractor guarantee
The wording, duration and scope of the underlying guarantee may be relevant to the insurance.
Requesting party
Details of the lender, warranty provider, funder or organisation requesting the evidence.
Required period
Any specified guarantee period or other requirement should be provided when seeking cover.
Need evidence of Insurance Backed Guarantee protection?
Where a suitable IBG has been accepted and the required information is complete, documentation can be provided as evidence of the applicable Insurance Backed Guarantee. Same-day certification may be available for eligible cases, subject to insurer requirements and the information supplied.
Peacock cannot guarantee that any particular Insurance Backed Guarantee, insurer or documentation will be accepted by every lender, warranty provider or other organisation. Their requirements should be confirmed directly where necessary. Insurance Backed Guarantee cover is also subject to insurer acceptance and the applicable policy terms, conditions and exclusions.
Have you been asked to provide an Insurance Backed Guarantee?
Tell us who has requested it, what work is being guaranteed and provide any written lender or warranty requirements you have received.
Retrospective Insurance Backed Guarantees
If qualifying work has already been completed without an Insurance Backed Guarantee being arranged at the time, retrospective cover may still be considered. This can arise during a property sale, refinancing, lender review or where additional evidence of guarantee protection is subsequently requested.
Can an Insurance Backed Guarantee be arranged after the work is completed?
In some circumstances, yes. A retrospective Insurance Backed Guarantee may be considered where qualifying work was completed previously but suitable insurance backing was not arranged at the time.
The insurer will usually need sufficient information about the contractor, completed work, original guarantee and circumstances surrounding the request before deciding whether retrospective protection can be offered.
Availability will depend on the individual case and insurer underwriting requirements.
Property Sale
A buyer, solicitor or other interested party may request evidence relating to previous works.
Refinancing or Mortgage
A lender may request additional guarantee evidence when refinancing or reviewing security.
Structural Warranty Review
A warranty provider may request suitable evidence in relation to specialist completed works.
Missing Previous Evidence
An IBG may not have been arranged originally and additional documentation is now required.
How is a retrospective IBG considered?
Because the work has already been completed, the insurer may need to understand both the original work and the reason Insurance Backed Guarantee protection is now required.
Tell us what was completed
Provide details of the work, contractor and approximate completion date.
Existing evidence is reviewed
The underlying guarantee and other available supporting information can be considered.
Insurer assesses the case
The insurer decides whether retrospective Insurance Backed Guarantee protection can be offered.
Documentation can be issued
Where accepted and requirements are met, applicable IBG documentation can be provided.
What information may be needed for a retrospective IBG?
The exact requirements will vary, but having as much information as possible about the completed work can help the insurer assess the request.
Details of the work
The nature, location and scope of the qualifying works already completed.
Completion date
When the work was completed and, where relevant, when the contractor guarantee began.
Contractor guarantee
A copy or details of the original written contractor guarantee may be required.
Reason for the request
Any lender, warranty provider, solicitor or contractual requirement should be provided.
Retrospective Insurance Backed Guarantees are subject to insurer acceptance and may not be available for every contractor, work type or set of circumstances. Additional information may be requested as part of the underwriting process. Policy terms, conditions and exclusions apply.
Need an Insurance Backed Guarantee for completed work?
Tell us what work was completed, when it was carried out and why an IBG is now required. Peacock can help establish whether retrospective cover can be considered.
Insurance Backed Guarantee FAQs
Answers to some of the most common questions contractors, developers and property professionals ask about Insurance Backed Guarantees, certification, guarantee periods, retrospective cover and insurer requirements.
What is an Insurance Backed Guarantee?
An Insurance Backed Guarantee (IBG) is a specialist insurance policy designed to provide protection behind an eligible contractor's written guarantee.
Depending on the policy and circumstances, the IBG may provide protection where the contractor is no longer able to honour the qualifying guarantee. Policy terms, conditions and exclusions apply.
Is an IBG the same as the contractor's guarantee?
No. The contractor's guarantee and the Insurance Backed Guarantee are separate. The contractor provides the original guarantee relating to the qualifying work, while the IBG is separate insurance protection designed to support that guarantee.
How long can an Insurance Backed Guarantee last?
The available guarantee period depends on the work, underlying contractor guarantee, insurer and underwriting criteria. For qualifying cases, Insurance Backed Guarantee periods of up to 25 years may be available.
What types of work can be covered by an IBG?
A broad range of qualifying construction and specialist works may be considered, including roofing, damp proofing, timber treatment, structural waterproofing, basement works, cladding, glazing, groundworks, piling, structural works, renewable energy installations and general building works.
Availability depends on the insurer's underwriting criteria and the individual contractor and project.
Do mortgage lenders require Insurance Backed Guarantees?
A mortgage lender or development funder may request an IBG or other suitable guarantee evidence in connection with particular works or properties.
Requirements vary between lenders, so acceptance should not be assumed. Where a lender has made a specific request, provide Peacock with the exact requirement so suitable options can be considered.
Can a structural warranty provider ask for an IBG?
Yes. In some circumstances, a structural warranty provider may request Insurance Backed Guarantee protection in relation to particular specialist works forming part of a development.
The exact requirement should always be checked with the warranty provider because an IBG and a structural warranty are separate forms of protection.
Can an Insurance Backed Guarantee be arranged retrospectively?
In some circumstances, retrospective Insurance Backed Guarantee cover can be considered for qualifying work that has already been completed.
The insurer may need information about the contractor, work, completion date, underlying guarantee and reason the IBG is now required before deciding whether cover can be offered.
Can I get an IBG for work that was completed several years ago?
It may be possible, depending on the age and nature of the work, the contractor, available documentation and insurer criteria. Older completed works can require additional information and retrospective cover cannot be guaranteed.
How quickly can an IBG certificate be issued?
Where the contractor is eligible, the required information is available and the insurer's requirements have been satisfied, same-day certification may be available.
Timescales depend on the individual case and should not be assumed until the required information has been reviewed.
What information is needed to arrange an IBG?
The insurer may require information about the contractor, trading history, experience, work type, value of the work, underlying guarantee and required guarantee period.
If a lender, warranty provider or commercial client has specified a particular requirement, that should also be provided.
Does every contractor qualify for Insurance Backed Guarantee cover?
No. Insurance Backed Guarantee cover is subject to insurer underwriting and acceptance. The insurer may consider factors including the contractor's experience, trading history, work type, guarantee wording and other relevant information.
Is an Insurance Backed Guarantee the same as a structural warranty?
No. An IBG is designed to provide insurance protection behind an eligible contractor guarantee. A structural warranty is a separate form of protection generally associated with specified structural defects or risks in qualifying developments.
One should not automatically be assumed to replace the other.
Can an IBG help when selling or refinancing a property?
It can sometimes be relevant where a buyer, lender, solicitor or other interested party requests additional guarantee evidence relating to previous qualifying works.
Where an IBG was not arranged originally, retrospective cover may be considered subject to insurer acceptance.
Will every lender accept the same Insurance Backed Guarantee?
No. Individual lenders, funders and warranty providers can apply their own criteria and acceptance requirements.
If an organisation has requested an IBG, the safest approach is to obtain the exact requirement and provide it before cover is arranged.
How do I get an Insurance Backed Guarantee quote?
Provide Peacock with details of your business, trade, the work being guaranteed and the guarantee requirement. If another organisation has requested the IBG, include any written specification or requirement they have supplied.
Peacock can then help establish which Insurance Backed Guarantee options may be available.
Insurance Backed Guarantee requirements and cover can vary according to the insurer, contractor, work, underlying guarantee and individual circumstances. Cover remains subject to insurer acceptance and the applicable policy terms, conditions and exclusions.
Still have a question about Insurance Backed Guarantees?
Tell us about your business, the work and the guarantee requirement and Peacock can help establish the IBG options available.
Get an Insurance Backed Guarantee Quote
Whether you need an Insurance Backed Guarantee for upcoming work, a lender or structural warranty requirement, or qualifying work that has already been completed, tell Peacock about your business and the guarantee you need. We can consider the information supplied and help establish the IBG options available.
Peacock Insurance Services Limited is authorised and regulated by the Financial Conduct Authority. Insurance Backed Guarantee cover is subject to insurer acceptance and the applicable policy terms, conditions and exclusions.