Insurance Backed Guarantees
Ultimate peace of mind
An Insurance Backed Guarantee provides the end customer with financial protection in the event that the guarantee provided by contractor, manufacturer or supplier cannot be honoured, due to insolvency. Therefore the guarantee remains valid even if the company is no longer trading.
What is an Insurance Backed Guarantee?
Put simply, an Insurance Backed Guarantee is a policy that ensures the promise of performance made under a guarantee. It's given to the customer by an independent trading company and is honoured even if the company ceases to trade. The customer is provided with ultimate protection under the Insurance Policy.
The difference between an IBG and Company Backed Guarantees supported by Annually Renewable Insurances;
- Monies held under an IBG are independently protected and separate from the company's trading activities.
- Premiums and capital required is determined and managed by independent insurance underwriters and not the company directors of the trading company.
- The Insurance is based on a single premium that covers the full duration of cover.
- Ongoing cover is not dependent on the company's renewal of annual policies.
- The policy continues in force for the duration of the period if the trading company ceases to exist.
- Oversight, administrative management and auditing of the policy is strictly governed under a regulatory framework.
