Our Background
Guarantee
Insurance Association was formed in 2006 with a view to becoming the leading
voice in the market place for providers of Insurance Backed Guarantees and
other Warranty related products. The Association brings together the common
aspirations of specialist insurance providers and aims to work with those
members, their customers - both Industry and Consumers, the Financial
Services Authority and other Government Bodies to promote this
type of specialist insurance product as well as minimum standards of competence
within the marketplace.
Our Objectives
-
To become the leading voice in the market place for providers of Insurance Backed Guarantees and other warranty related products.
- To promote the use of Insurance Backed Guarantees and other Warranty
related products to both the Consumer and Industry.
- To encourage other providers
of Insurance Backed Guarantees and other Warranty related products to
become members of the Association.
- To ensure all members operate within
the regulations set down by the Financial
Services Authority.
- To promote
minimum standards of competence within the market place embracing the
Treating Customers Fairly principle.
- To educate Contractors in the use of Insurance Backed Guarantees and other Warranty related products, ensuring consumers receive written contracts and guarantee documents.
What We Do
Guarantee Insurance Association was formed in 2006 to express the views and aspirations of the companies in the UK who provide Insurance Backed Guarantees. The founding members represent around 80% of the domestic market in the UK and most of the commercial market. Members have to be authorised and regulated by the Financial Services Authority and will use Insurers who are also authorised and regulated by the Financial Services Authority.The Association provides one point of contact for interested parties who
wish to know more about this form of Insurance protection.
The Association
sets down a number of requirements for its members, most specifically that
all members must have been trading actively in the market for a minimum of
5 years and that they are authorised and regulated by the Financial
Services Authority.
The Association represents the interests of its members where
information may be required on the specialist type of insurance products
or where it may be necessary to initiate market related discussions with
other professional bodies or government.
The Association will work with its members, their customers, industry, local authorities and government to promote the advantages of backing up a contractor's written guarantee with an insurance policy to protect the end customer.
In the main this product is purchased by home improvement contractors such as glazing companies, roofers and builders etc. who provide the public with a written guarantee for their work. Often these guarantees are for periods up to 10 years.
However should that contractor cease to trade during the period of their guarantee then the customer has no protection if they find a fault in their work or materials. With an Insurance Backed Guarantee the customer has a policy which will mirror the terms of the contractor's written guarantee for the remaining period if that contractor has ceased to trade. Some providers of this insurance cover cessation of trade for any reason and others provide cover which is limited to certain events causing cessation such as Liquidation, Receivership, Bankruptcy, State Retirement or Death.
In April 2002 it was made compulsory in England and Wales that glazing installers had to either obtain Local Authority Building Control for replacement windows and doors in the domestic market or alternatively join a government initiative called FENSA whereby the installing company could self certify their work. Nearly 5 years later virtually all such glazing contractors are now through a self certification scheme with FENSA, BSI or Certass, and as a condition of membership the members must ensure that all customers must be offered an Insurance Backed Guarantee when windows or doors are being installed.
In January 2006, the TrustMark scheme was launched and it is an initiative between government, consumer groups and industry designed to assist consumers find reputable firms to do repair, maintenance and improvement work in their homes.
TrustMark is based around a set of government-endorsed standards for Trade Associations, Certification Bodies and other organisations that wish to become Approved Scheme Operators. Only these Scheme Operators are allowed to award the TrustMark to registered firms.
The scheme currently has 19 Approved Scheme Operators and over 10,000 registered firms.
The use of Insurance to back up a contractor's work whether it is in the domestic or commercial market is growing and the members of the Association felt the need to form together so that there could be a voice for the industry and a point of general reference should the public or contractors wish to obtain more information on this service to protect the end customer.