Insurance Backed Guarantees

Insurance Backed Guarantees (IBG) or Consumer Prepayment Protection is designed to provide consumers with protection against being exposed in the event that a supplier is unable to meet its obligations.

Example 1: a consumer pays a deposit for a product which will not be delivered for 3 months. Before the goods are delivered, the supplier enters into liquidation; the IBG policy would refund the consumer their deposit paid.

Example 2, a double glazing window installer provides a 10-year warranty to a consumer. After 6 months, an installation fault becomes apparent, but the installer has since failed and is no longer able to meet its obligations in terms of the original installation; the IBG would cover the cost of the repair.

These types of products are generally offered via organised schemes and industry associations.

For more information on these and other products, please contact Ed O’Regan.