Insurance Backed Guarantee Products
A Guide to Guarantees for Renewable Installations
Please note, as of the 16 December 2024, MCS is no longer an Appointed Representative of Independent Warranty (IWA). This means that you can no longer purchase an IWA Insurance Backed Guarantee (IBG) through the MCS Installation Database (MID).
The Manufacturers’ Guarantee
All product guarantees must be provided to the consumer free of charge and be in line with any conditions set out in the MCS product standards. By law, these guarantees must not limit the statutory rights.
The Installation Guarantee
In addition to your legal obligation to give customers a free guarantee against manufacturing faults in goods supplied, when dealing with domestic customers, you must guarantee the workmanship of the installation for a minimum of two years following installation. This guarantee must be transferable. If your customer sells the property where the installation is located, then the guarantee must be transferable to the new property owner.
This guarantee must be insured to ensure that this workmanship guarantee will be honoured if your company ceases to trade, during the term of the guarantee offered. A number of insurers offer policies to insure the warranty and these are known as Insurance Backed Guarantees (IBG).
Insurance Backed Guarantees
An Insurance Backed Guarantee (IBG) is an insurance policy that backs the original guarantee given by a contractor. It provides a consumer with cover for an installation in the event that their MCS certified contractor ceases to trade during the term of the guarantee. The Consumer Codes that work in conjunction with MCS place an obligation on their members to provide an IBG and offer enhanced levels of protection to consumers.
As with terms in your contract of sale, terms in guarantees cannot limit (or replace) the rights consumers have in law. This means that they can’t be used to limit the liabilities of the retailer or the manufacturer. For example, irrespective of the guarantee you give to your customers, they have a right to complain about faulty goods for up to six years after the purchase (within five years of the fault becoming apparent in Scotland).
When purchasing an IBG, you could choose from the following providers:
Consumer Protection Association (CPA)
Home Improvement Protection (HIP)
Please note, for domestic installations an IBG is required and you will need to declare which organisation has provided the IBG when creating a certificate on the Installations Database.
Valid IBG Policy
It is important for the contractor to pay for the policy at the point of registering the consumer’s installation with MCS. A policy will only be valid once the premium has been paid and the physical policy has been issued to the consumer.
The period of cover should be equal to the maximum guarantee period provided by the installer/contractor. The maximum period of cover is up to 10 years. An insurance policy cannot be greater than the guarantee provided by the installer/contractor. If a policy is purchased for a lesser period of the guarantee provided the cover will last for the maximum period provided on the policy issued.
If you need support when purchasing an IBG, please contact the MCS Helpdesk Support Team on 0333 103 8130.