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As a property developer or contractor, you must obtain insurance coverage for your construction project. Structural warranties are often the preferred option for many in the construction industry, but there are other options, too.
An Insurance Backed Guarantee (IBG) can offer an extra layer of protection for the quality and longevity of construction projects.
At ABC+ Warranty, property developers and homeowners can obtain an IBG to ensure their projects can continue if the original contractor company ceases trading during the project.
Explained Insurance Backed Guarantees
An Insurance Backed Guarantee is a contractual agreement that’s designed to enhance a contractor’s written guarantee, which affords clients an additional measure of protection throughout a construction project.
An IBG offers a back-up plan when unforeseen events occur and the original contractor company cannot fulfill their commitment to repair structural defects because they no longer trade.
Essentially, Insurance Backed Guarantees ensure the original guarantee provided can still be honoured.
When are Insurance Backed Guarantees used?
Insurance Backed Guarantees are used in several situations, providing security to homeowners and developers that any issues can be rectified even if the contractor is insolvent.
Here are three examples of when IBGs are useful.
Flat roof installations
Flat roof installations are a common area in construction where Insurance Backed Guarantees are used. If the original installer of the flat roof is unable to fix a defect that’s appeared because of poor workmanship, the IBG can cover the cost of any repairs.
Tanking systems
Insurance Backed Guarantees are also used to protect tanking system projects. Tanking systems prevent water from leaking into buildings, which can cause health and structural issues.
IBGs for tanking systems provide confidence for clients regarding the system’s effectiveness. If any water problems arise, the Insurance Backed Guarantee can step in to provide a resolution.
Piled foundations
For projects with piled foundations, an Insurance Backed Guarantee is a safety net should any settlement issues arise after the construction is completed. The IBG can alleviate the financial burden of any structural repairs.
Summary
It’s clear to see that an Insurance Backed Guarantee can provide huge assurances for anybody involved in a construction project – no matter the size.
In today’s construction industry, businesses can struggle to stay afloat with rising costs and uncertain futures. If a contractor that has previously worked on a project is no longer trading, they cannot repair structural issues that arise months or years after completion.
In these instances, an IBG is a perfect solution. It’s also a fantastic way of proving to any investors that their financial investment is safe because the project is protected in the future.
Interested in learning more about Insurance Backed Guarantees and other structural warranties? Check out ABC+ Warranty.
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