Valcan, in conjunction with Certifix*, has collaborated with manufacturers and insurance consultants to develop the systems and processes required to enable you or your client to be eligible for a project-based Insurance Backed Guarantee. Our traceable, certified, and trustworthy products and services go beyond the standard. We can help you meet and implement the criteria for the guarantee requirement.
According to one of our insurance partners, “More than 99% of insurance claims share the same root cause: installer error.” This alarming statistic is why we offer onsite training programmes for installers.
Meeting the Insurance Backed Guarantee criteria paves the way for meeting the standards set out in the Golden Thread concept.
The Golden Thread
The Golden Thread of Information, as proposed in the Building Safety bill, is a live digital document with accurate and up-to-date information of the building data. With the aim of promoting transparency, the document allows you to access details on how the building was designed, built and is being operated at any point of time during the lifecycle of the building.
“A ‘golden thread’ of good quality information will also enable future building owners to better manage their buildings safely.” – Building a Safer Future by Dame Judith Hackitt
Through this concept, the Regulator or residents will have access to the data that would allow them to, if necessary, hold the right party responsible for any mishaps. The Golden Thread of Information will not only standardise but also regulate the way that the industry stores and passes on imperative information.
What is an Insurance Backed Guarantee (IBG) and why do I need to arrange one?
An IBG is a very simple insurance policy that backs a contractor’s own guarantee.
The contractor will issue the customer with a document stating that they will return to rectify defects occurring due to poor workmanship, materials or design for periods of up to 12 years. The insurer issues a policy to state that if a valid claim is received during the guarantee period and the contractor is no longer trading then the insurer will rectify it.
Why do I need to arrange one?
A contractor guarantee demonstrates to the customer that the contractor is confident in their work and willing to stand behind it. However, should the contractor cease to trade, the customer has a worthless piece of paper, with nowhere to turn, should a defect occur.
By arranging an IBG, the customer is confident that they really do have peace of mind for the period of the guarantee.
It gives you a point of difference and the cost can be included in the contract. As only contractors that meet the underwriting criteria can obtain an IBG, it gives you an edge over the competition if you can give your customers the option of having an IBG.
What do insurers look for?
Insurers are cautious and will not agree to back all guarantees, they will carry out a number of checks on the contractor, including financial, before agreeing to offer an IBG. Remember the insurer only deals with claims if the contractor is no longer trading, so the financial strength of a company is a key factor.
The contractor’s experience is taken into consideration and insurers will require their own inspections to check the installation.
New companies may find it difficult to obtain IBG’s, simply because they do not have a trading history, but if the Directors can demonstrate a degree of suitable experience, then insurers may consider providing cover.
What can be covered?
✓ Defective Workmanship
✓ Defective Materials
✓ Defective Design
✓ Up to 12 years
We are pleased to be able to offer an insurance guarantee with “A” rated insurance underwriters. It is important to check to ensure that long term guarantees are provided by “A” rated UK based insurers. Always check to ensure that your insurance guarantee provides this important protection.
What are the next steps?
Please contact our head office by calling 01278 428245 or by email to firstname.lastname@example.org. Once we have your details we’ll discuss how to become eligible for Insurance Backed Guarantees.
*Certifix provides specialist rainscreen cladding fixings & materials. Visit: www.certifix.co.uk