Insurance Backed Guarantees in Retrofit

Insurance Backed Guarantees (IBGs) play an important role in the UK retrofit sector by providing consumer protection where PAS 2030 installation guarantees cannot be honoured.

Insurance Backed Guarantees, often referred to as IBGs, are now a common feature of the UK retrofit and home improvement market. As retrofit delivery increases and more work is linked to public funding, expectations around consumer protection have become clearer and more consistent.

For installers working under PAS 2030 certification, IBGs are part of a wider conversation about long term outcomes, customer confidence and responsible delivery. This guide explains what an IBG is, why it is different from a standard guarantee, and what credible provision looks like in practice.

What an Insurance Backed Guarantee is

An Insurance Backed Guarantee (IBG) is a protection that supports a homeowner if an installer ceases trading and is unable to honour their written guarantee, subject to the policy terms and conditions. An Insurance Backed Guarantee is designed to sit behind an installer’s own written guarantee.

Its purpose is straightforward:

If an installer ceases trading during the guarantee period and is no longer able to honour that written guarantee, the insurance policy is intended to support the homeowner’s protection, subject to the policy terms and conditions.

This is why IBGs are often described as cease to trade protection. They are not designed to replace the installer’s responsibilities. They are there to support the customer if the installer is no longer operating.

Why a standard guarantee is not the same

A standard workmanship guarantee can be entirely legitimate. However, it usually relies on one key assumption.

That the installer remains in business and able to respond in the future.

If a business closes, restructures or exits the market, that guarantee may be difficult or impossible for the homeowner to rely on. An IBG is designed to address that specific risk by placing insurance backing behind the installer’s promise.

This distinction is increasingly important in retrofit, where measures are expected to perform over long periods of time.

Key Points

• Insurance Backed Guarantees support consumer protection in home improvement and retrofit work

• They sit behind an installer’s written guarantee

• Protection typically applies if the installer ceases trading

• IBGs do not replace the installer’s responsibility for quality work

• They are commonly used alongside PAS 2030 retrofit installations

Why Insurance Backed Guarantees matter in retrofit

Retrofit measures are long life investments. Insulation, ventilation improvements, heating systems and renewable technologies are designed to deliver benefits for many years.

For homeowners, IBGs help provide:

• Confidence that protection may still apply if the installer is no longer trading
• Reassurance where the cost of remedial work could be significant
• Greater clarity around what happens if problems arise in the future

For funders and scheme stakeholders, robust consumer protection helps:

• Support confidence that funded outcomes will last
• Reduce the risk of future remediation costs falling back on households or the public purse
• Strengthen trust in the retrofit supply chain

This is why regulated, insurer supported protection is increasingly visible across quality frameworks and funded delivery requirements.

Why IBGs matter for PAS 2030 installers

PAS 2030 is a certification for installers and subcontractors delivering energy efficiency measures. It is mandatory for most publicly funded retrofit work and sits within a regulated environment that places strong emphasis on quality, competence and customer protection.

IBGs support this environment because they demonstrate that consumer protection has been considered beyond installation and handover.

For PAS 2030 installers, IBGs can help by:

• Supporting customer confidence at the point of sale
• Reinforcing a professional approach to consumer protection
• Reducing reputational risk if issues emerge years after completion

Quality still depends on competent design, correct installation and compliant processes. An Insurance Backed Guarantee is not a quality certificate. It is financial protection designed to support the homeowner if the installer ceases trading and cannot honour their written guarantee, subject to the policy terms.

IBG provision

The UK market includes several established providers operating within regulated consumer protection frameworks. Qualitymark Protection is a well known example, associated with insurance backed guarantees and related financial protection products within home improvement and retrofit.

Many NetRet members recognise Qualitymark for its structured approach and straightforward customer journey. It is a good illustration of the level of transparency and robustness installers should look for when putting consumer protection arrangements in place.

What to look for when choosing an IBG provider

Installers should assess IBG providers carefully and focus on fundamentals rather than marketing language.

Key points to consider include:

• Evidence that the product is properly underwritten
• Clear and accessible policy wording, including exclusions and duration
• A straightforward claims process that homeowners can understand
• A proven track record in the UK home improvement or retrofit market
• Strong governance and consumer protection standards
• Where applicable, operation within an FCA regulated environment

The objective is protection that customers and scheme stakeholders recognise as credible and robust.

Where NetRet fits

NetRet supports retrofit businesses through structured membership, digital systems and training pathways that help organisations manage their PAS 2030 journey and competence evidence.

Support focuses on:

• Digital systems to organise and maintain required documentation
• Clear information to help members understand common market expectations

Installers remain responsible for selecting appropriate consumer protection arrangements and ensuring they meet scheme and contractual requirements.

Quick questions installers often ask

Are IBGs mandatory?
Requirements vary by scheme, contract and measures delivered. Many funded programmes expect robust consumer protection and IBGs are widely used to support that expectation.

Are IBGs the same as deposit protection?
No. Some providers offer both products, but they serve different purposes. Always check what protection applies and when.

Do IBGs guarantee the quality of work?
No. Quality comes from competent design, correct installation and compliant processes. An IBG provides financial protection if the installer ceases trading and cannot honour their written guarantee.

Final thought

In a regulated retrofit market, the question is no longer just whether a guarantee is offered. It is whether the homeowner remains protected if circumstances change years later.

Insurance Backed Guarantees provide a recognised route to long term, insurer supported consumer protection and form part of responsible delivery alongside PAS 2030 certification and robust installation practices.