An Insurance Backed Guarantee (IBG) is a regulated insurance policy, paid for by installers, that underwrites the homeowner’s company guarantee if the installing company ceases to trade before that guarantee expires.
How an Insurance Backed Guarantee (IBG) works in plain English
The concept is straightforward, but the flow below is the clearest way to explain it:
Step 1 — The installer completes the work and gives their guarantee
The homeowner pays the installer, and the installer completes the work in full. The installer then issues their own written guarantee (for example, “10-year guarantee on all materials and installation”). This is a contractual promise from the installer’s company to the homeowner.
Step 2 — The installer backs it with an IBG
The installer takes out an Insurance Backed Guarantee (IBG) policy from an FCA-regulated provider such as HomePro (FCA reference number 304449). The Insurance Backed Guarantee mirrors the scope and term of the installer’s own guarantee, up to the policy limits. The homeowner then receives their Insurance Backed Guarantee paperwork, confirming the FCA-regulated insurer standing behind it. With HomePro, paperwork sent by email usually arrives within 24 hours of registration; by post, it can take a little longer. Timescales may vary with other providers.
Step 3 — If the installer stops trading, the insurer steps in
If the installer’s company ceases to trade, as defined in the policy wording, the homeowner follows the claim process set out in their Insurance Backed Guarantee paperwork. The insurer assesses the claim against the original guarantee terms. Claims are repair-led, not cash payouts — the insurer arranges the repair rather than writing the homeowner a cheque. See what happens to the homeowner’s claim if the installer goes bust.
Note: this reflects a standard IBG. Where deposit cover is included, the process differs slightly — see how deposit cover works.
The key principle: the IBG is only triggered if the installer ceases trading as defined in the policy wordings. While the installer is still in business, the homeowner must use the company guarantee route first.
What does an IBG actually cover?
An IBG covers the same scope as the installer’s own company written guarantee — up to the policy limits. In practice, that means:
Typically covered:
- Defective workmanship by the installer
- Faulty materials supplied and fitted by the installer
- Failure to meet Building Regulations (where it falls within the insurance backed guarantee scope)
- Valid claims during the policy term if installer ceases trading as defined in the policy wordings
Typically excluded:
- Damage caused by the homeowner or a third party after installation
- Normal wear and tear
- Any defects that existed before the installation
- Claims while the installer is still trading
| Typically covered | Typically not covered |
|---|---|
| Installer’s workmanship defects | Homeowner-caused damage |
| Faulty materials the installer supplied and fitted | Normal wear and tear |
| Failure to meet Building Regulations (where within the guarantee scope) | Pre-existing defects |
| Valid claims during the policy term if installer ceases trading as defined in the policy wordings | Claims while the installer is still trading |
The policy wording governs what is and is not covered.
How long does an Insurance Backed Guarantee last?
Insurance Backed Guarantee term lengths vary by trade and scheme. The table below shows the standard terms across the main UK installation sectors.
| Trade | Standard IBG term | Notes |
|---|---|---|
| Double glazing (FENSA / CERTASS / Assure) | 10 years | Minimum of 6 years is required under CPS rules since June 2014 |
| Roofing (NFRC CPS) | 10 years | Covers roof refurbishment up to £50,000 contract value |
| Solar PV / renewables (MCS / RECC / HIES) | Minimum 2 years, 6 for the redeveloped MCS Scheme | MCS requires workmanship guarantee for minimum 2 years; 6 for the redeveloped scheme |
| General building/extensions (TrustMark / FMB) | Minimum 2 years | TrustMark minimum is 2 years |
| Bathrooms and kitchens (TrustMark / BiKBBI) | Typically 2–10 years | Depends on scheme and provider |
An Insurance Backed Guarantee is capped by two limits
It can never run longer than the installer’s own written guarantee, and it can never exceed the maximum term of cover available on the policy.
The first cap: the Insurance Backed Guarantee mirrors your guarantee length, not the policy’s maximum term. If you issue a 6-year guarantee, your Insurance Backed Guarantee runs for 6 years — even if a 10-year policy is available.
The second cap works the other way. If your company guarantee is 25 years but the policy’s maximum cover is 10 years, the Insurance Backed Guarantee is limited to 10 years. Your company guarantee still stands for the full 25 years; only the insurance-backed element stops at the 10-year maximum.
Most installers in double glazing and roofing issue 10-year guarantees, so 10-year Insurance Backed Guarantees are the norm in these trades.
Who needs to provide an Insurance Backed Guarantee?
The short answer: in Double Glazing, if you self-certify domestic installation work through a Competent Person Scheme (CPS) such as FENSA, CERTASS, or Assure — an IBG is a legal requirement for every domestic job. The HomePro double glazing IBG page confirms this clearly: “If you self-certify domestic double glazing work through a Competent Person Scheme such as FENSA, CERTASS or Assure, it is a legal requirement to include Financial Protection (an Insurance Backed Guarantee) in your quotes for a minimum of six years from completion.”
In renewables, the requirement depends on which MCS scheme an installer sits under — MCS is currently moving all certified installers onto a new model. Installers still on the current scheme must be members of a Consumer Code (RECC or HIES), both of which require IBGs for domestic work. Installers who’ve moved onto the MCS Redeveloped Scheme must instead buy an MCS-approved financial protection product for every job, such as the HomePro MCS Insurance Backed Guarantee. The transition is rolling out through 2026, with all MCS-certified installers required to be on the redeveloped scheme by 31 March 2027.
NFRC CPS-registered roofers must issue a 10-year IBG on all notified roof refurbishment work up to £50,000 in contract value. TrustMark-registered businesses must provide a minimum 2-year IBG on all domestic installations.
For a full breakdown of which trades require IBGs — and whether it is mandatory or recommended for your specific scheme — see our detailed guide: Do UK installers legally need an Insurance Backed Guarantee?
What an Insurance Backed Guarantee is NOT
This is where many installers — and homeowners — get confused
Understanding what an Insurance Backed Guarantee is not is as important as understanding what it is.
An Insurance Backed Guarantee is not a manufacturer’s warranty. A manufacturer’s warranty covers defects in the product itself — a sealed double glazing unit failing, a solar panel underperforming, a boiler component breaking. The manufacturer provides this directly. It has nothing to do with the installer’s workmanship and does not require the installer to be trading or not. An Insurance Backed Guarantee underwrites the installer’s company written guarantee instead. See how an IBG differs from a manufacturer’s warranty. The two products serve completely different purposes and can both be relevant for the same job.
An Insurance Backed Guarantee is not a company written guarantee. The company written guarantee is your contractual promise to the homeowner. It is a document you provide. An Insurance Backed Guarantee is the insurance policy that backs that guarantee if your company ceases trading as per the policy wordings. Without a written guarantee from you, there is nothing for the Insurance Backed Guarantee to underwrite.
An Insurance Backed Guarantee is not deposit protection. Deposit protection is a separate product that covers the homeowner’s advance payment if the installer ceases trading before completion. It typically covers up to 25% of the contract value (maximum £10,000) for a fixed period from the date of contract signing — usually 90 to 120 days. An Insurance Backed Guarantee covers the period after completion for the period of cover as per the policy terms. You may need both products — see the difference between IBGs and deposit protection, particularly if you take deposits on renewable energy, where you may require both.
An Insurance Backed Guarantee is not regulated by FENSA, CERTASS, or MCS. The Insurance Backed Guarantee provider is regulated by the Financial Conduct Authority (FCA). FENSA, CERTASS, and MCS are Competent Person Schemes or certification bodies — they set the rules about which FCA-regulated providers/products their members may use, but the Insurance Backed Guarantee itself is an insurance product governed by the Insurance Act 2015 and the FCA’s ICOBS rules.
| What installers confuse with an IBG | What it actually is |
|---|---|
| Manufacturer’s warranty | Product warranty from the product manufacturer |
| Company written guarantee | Installer’s contractual promise to the homeowner |
| Deposit protection | Insurance covering the homeowner’s advance payment pre-completion |
| CPS registration | Competent Person Scheme membership (FENSA, CERTASS, Assure) |
| TrustMark registration | Government-endorsed quality scheme membership |
Why FCA regulation matters
An Insurance Backed Guarantee provided by an FCA-regulated insurer means the homeowner’s claim is protected under the Financial Services Compensation Scheme (FSCS). If the insurer itself fails, the FSCS provides a safety net. Non-FCA “guarantees” — contractual products issued by unregulated providers — do not carry FSCS protection.
HomePro (FCA reference 304449) has held FCA authorisation since 1999. All Insurance Backed Guarantees issued through HomePro are underwritten by FCA-authorised insurers. You can verify any Insurance Backed Guarantee provider’s regulated status at register.fca.org.uk.
The IBG and your sales process
Homeowners respond to seeing protection in writing. In our own research, around 60% said they were more likely to accept a quote that included an Insurance Backed Guarantee over one that didn’t.
How to mention it in your quote
Keep it simple and keep it bundled into your price. You’re not authorised to sell or advise on insurance, so the Insurance Backed Guarantee should never appear as its own line item with a separate cost — it’s part of the guarantee you’re providing, not a product you’re selling alongside it. See what installers pay per job for more on this.
A line like this works:
“This quote includes an Insurance Backed Guarantee from HomePro. For more information about your HomePro Insurance Backed Guarantee, click here.”
With HomePro’s auto-issue capability for FENSA, CERTASS, and Assure jobs, the Insurance Backed Guarantee is triggered automatically the moment your Building Regulation Compliance Certificate (BRCC) is registered — no separate registration, no end-of-month batching, no paperwork to chase.
Registering an Insurance Backed Guarantee also builds a public track record. Every homeowner is invited to leave a review, which is added automatically to your own HomePro profile page.
Frequently asked questions
What is an Insurance Backed Guarantee?
An Insurance Backed Guarantee (IBG) is an FCA-regulated insurance policy purchased by the installer at the point of job completion. It backs the installer’s own company written guarantee, stepping in to honour valid claims if the installer’s company ceases to trade during the guarantee term as per the policy wordings. The homeowner is the policyholder; the installer pays the premium.
Who pays for the IBG — the installer or the customer?
The installer pays the premium. The cost is typically absorbed into the job price. The homeowner is the policyholder but does not pay directly for the policy.
Can a homeowner make an IBG claim while the installer is still trading?
Generally, no. A standard Insurance Backed Guarantee only comes into play once the installer’s company has ceased trading as defined in the policy wordings — while the installer is still in business, the homeowner must go through the company guarantee route first.
There’s one exception: MCS-approved financial protection products used under the MCS Redeveloped Scheme can cover additional circumstances. Check the specific policy wording for what’s included.
What does “cease to trade” mean for IBG purposes?
This is defined in the policy’s terms and conditions, and it varies between providers and policy types. Ask your Insurance Backed Guarantee provider for their exact definition rather than assuming a standard meaning applies.
Is an IBG transferable if the homeowner sells their property?
It depends on the installer’s own written guarantee. Because an Insurance Backed Guarantee underwrites that guarantee, it can only transfer to a new owner if the guarantee itself is transferable. Where it is, the Insurance Backed Guarantee normally transfers with it — though providers may have a specific process and may charge an administration fee.
Sources
- HomePro — Insurance Backed Guarantees
- FCA Financial Services Register — HomePro Ltd (FRN 304449)
- FENSA Help — Insurance Backed Guarantee
- HomePro — Double Glazing IBG
- MCS Certified — IBG Products
- NFRC CPS — Insurance Backed Guarantees
- Installsure — IBG Explainer
- CORC — IBG FAQs
- Insurance Act 2015
- Financial Services Compensation Scheme
Join over 2,000 UK installers who auto-issue FCA-regulated IBGs with every job through HomePro. Call 0800 131 0500 or join the HomePro network today.