What is an insurance-backed guarantee?
An insurance-backed guarantee (IBG) protects residential and commercial property owners, and is automatically issued for roof refurbishment work up to the value of £50,000 put through the Competent Person Scheme.
IBGs underwrite the installing contractor’s written guarantee for faulty workmanship or materials if the contractor ceases trading.
Why is it needed?
The IBG protects property owners for 10-years after completion and payment of roofing works, against insolvency of the NFRC CPS registered contractor.
What does it mean for CPS registered contractors?
One of the benefits to becoming a CPS registered contractor is that your roof refurbishment work is covered by a 10-year insurance backed guarantee, from a provider of your choice.
This gives your clients that extra peace of mind and removes the process of independently obtaining additional security for their roofing project
What if my work is over £50,000?
If the value of your roof refurbishment works exceeds £50,000, an Insurance Backed Guarantee may still be required. Under the requirements of the Competent Person Scheme, all registered contractors undertaking roof refurbishment works are required to provide an IBG for projects valued below £50,000. For projects exceeding this value, the requirement may vary depending on the client’s specification. In cases where the client does not require an IBG (particularly housing associations or local authorities), the CPS registered contractor may choose to opt out of providing one.
