The Federation of Master Builders

Insurance Backed Guarantees (IBGs) for Builders

Published date: 24 October 2023

Insurance Backed Guarantees (IBGs) give your clients extra protection for up to 10 years after a project is finished. They cover various home improvements like roofing, refurbishments, and extensions.

Insurance Backed Guarantee explained

An Insurance Backed Guarantee (IBG) is an insurance policy that helps homeowners if there are problems with the quality of the work after your business is no longer operating if you've retired, or suffering from an illness and you can't fulfil the written guarantee. 

What does an IBG cover?

If there are defects found in the completed work after a project is finished, and your business is no longer in operation, the IBG steps in. It covers the reasonable cost of fixing these defects, sticking to the original contractor's guarantee and insurance policy terms, up to the original contract price. This ensures your clients' investment is protected and keeps your reputation strong.

How does offering IBG to a client benefit my business? 

By providing an IBG to your clients, you’ll build a stronger, more robust aftersales package for consumers, building trust. This insurance policy provides peace of mind to your clients in case of unexpected financial or company changes, retirement or illness - things that may not have been considered when securing the job. It offers assurance to the client that your written guarantee will be honoured even if, in the unfortunate event, you cease trading or retire.

What type of IBG insurance can FMB insurance offer? 

FMB Insurance's can provide a range of IBGs, spanning 2, 6, or 10 years, commencing from the date of completion and is available on a wide range of home improvement projects, including: 

General Building – such as a porch or new extension on your home

Loft conversions


Damp / Timber Treatments





Whatever changes your client wants to make to their property, they can benefit from an Insurance Backed Guarantee to give them full protection on their investment, after completion. 

IBG Contractor FAQs

Do I need to provide this cover?

You don’t need to, but it is recommended. It’s a great way to give your customers’ peace of mind that the work is fully covered, should anything go wrong.

Additionally, certain organisations such as competent person self-certification schemes; and certain trade bodies may- as part of their scheme rules and membership terms- require that you provide insurance backed guarantees to your customers.


How do I get a quote?

You can contact the FMB Insurance team on 01353 652760 to run through a quote, email [email protected] or request a quote online by visiting 


How much is the excess?

The excess for our Insurance Backed Guarantee is £50.

An Insurance Backed Guarantee is more than just financial safety. In a tough market, offering IBGs makes you stand out, giving you a competitive edge and building trust. This extra security could be what signs the dotted line—especially since homeowners are taking extra precautions before committing to home improvement projects.

For more information on how an Insurance Backed Guarantee can benefit you, contact the FMB Insurance team at 01353 652760 or email [email protected].


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