New Insurance Offer to support MCS certified Contractors
28th September 2020
MCS, the national standards organisation for renewables has today announced a new partnership that is set to ease access to insurance backed guarantees (IBG) for MCS certified contractors and their consumers.
MCS have collaborated with the Independent Warranty Association (IWA) and undertaken system development to enable contractors to raise an IBG for their consumer at the point of raising the MCS certificate for an installation.
IWA has been providing Insurance Backed Guarantees since 1985 protecting both suppliers and customers with policy cover that provides peace of mind for up to 10 years.
An 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. 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.
This integrated IBG product range includes policies across the spectrum of renewable technologies including Solar PV, heat pumps and biomass with workmanship cover available for anything from two to ten years.
Ian Rippin, CEO of MCS said: “These IBGs will be available for purchase at the point of certificate creation for an installation. Not only should it reduce the price that a Contractor pays to an insurance provider for their IBG, but it also simplifies the process. MCS and IWA have worked hard to come up with an attractive pricing structure for these IBGs. The premium payable varies depending on the type of technology installed and the guarantee you want to offer your customers.”
He added, “We know from speaking to contractors that one of the biggest costs to their businesses is the need to purchase an IBG for each installation. However, IBGs do provide valuable customer protection so working with IWA we have been able to determine a workmanship only insurance policy, that separates out the deposit protection elements that can make policies expensive. If deposits are taken, then these do need to be protected but we recognise that deposit protection is possible in other ways, including if a deposit is taken via a credit card, therefore negating the need for deposit protection insurance and reducing the cost of the IBG to the contractor.”
Alex Seaman, National Sales Manager of IWA said, “Authorised by the Financial Conduct Authority, IWA’s IBGs provide the best levels of insurance-backed warranty for renewable technology installations. We are pleased to be working with MCS and believe that the new streamlined process will be welcomed by contractors who can now simply add their IBG product when completing their MCS admin.”
The new insurance product range will be available to purchase via the MCS Installations Database (MID) in October.
The purchase of an IWA policy via MCS will be entirely optional and other IBG providers are available.