It is a policy issued by an insurance company to the owner of the property to underwrite an original guarantee provided by the installer. It only comes into force if the customer makes a claim on the installer’s guarantee and the installer is no longer trading and therefore not in a position to honour the guarantee.The insurance company then takes over the ownership of the guarantee and is obliged to honour any bona fide claims made on that guarantee for the remainder of the term subject to the terms of the policy.
Thousands of contractors, large and small, cease to trade each year for a multitude of different reasons. Guarantee periods are mainly 10 years in this industry and much can happen to any business in that time, regardless of current stature. This is particularly true in today’s volatile business environment. If your chosen installer were to cease trading you could be left with faulty goods, a guarantee of absolutely no value and a potential bill of thousands of pounds to rectify your problems.
This risk is overcome by using a DGCOS Insurance Backed Guarantee administered by IWA.
IWA are able to provide a specialist Insurance Backed Guarantee Policy to all customers of members of DGCOS. This protects your guarantee. This means that, should the member named above cease to trade, any bona fide claims under your guarantee will be honoured by the insurer.
The above information is provided by IWA, 20 Billing Road, Northampton, NN1 5AW, who are authorised and regulated by the Financial Services Authority (Reg No. 305650).
For more information regarding this insurance, IWA can be contacted on: