Driveway Insurance Backed Guarantees
We felt compelled to write after reading a tweet from a company called the resin mill. It was regarding Driveway Insurance Backed Guarantees (IBGs.)
This sounds like a good solution for contractors and we agree that this could be a valuable add on; providing peace of mind to customers that need that extra re assurance.
It will be interesting to see the underwriting criteria for which ‘faults’ are subsequently covered by claims. Insurance policies have a notorious reputation (just like some rogue traders in all industries) of refuting claims. So, if you are a contractor and considering taking out such a policy make sure you check the small print very very carefully. Of course a temptation may be that armed with such a guarantee a contractor could well cut corners in the knowledge that if they ‘fold’ for whatever reason – an insurer may pick up the tab.
From a customer’s perspective it will be vital to check the Insurance Backed Guarantee, specifically exclusions and conditions of making a valid claim.
Do you have experience of making a claim on an IBG – We’d love to know how you got on. Tell us.
The post also refers to IBG’s honouring Bona – Fide claims. This will only work if the IBG provider specifies from the start what any guarantee will cover and just as importantly, what it will not.
Below is an extract from the post:
Insurance companies offer IBG’s to contractors who they have thoroughly analysed to be incredibly low risk. Insurance companies carry out heavy financial and legal checks on potential companies in addition to receiving positive references and viewing works carried out. Contractors have to satisfy the high quality standards of the insurer.
Driveway insurance backed guarantees – Questions??
Questions that come to mind are what type of ‘thorough analysis’ is carried out to establish that a contractor is ‘incredibly low risk’??? To what extent are ‘heavy financial and legal checks’ carried out.
This post seems like it is a sales pitch to sell an insurance policy to companies that may, or may not benefit from such policies. Yes, it may add some peace of mind and yes it may definitely help with commercial projects but careful consideration must be given to weighing up the cost vs the benefit to a driveway contractor.
As with all these types of policies it will be newer companies that may be easier swayed to the value of them.
This is an area of interest to Drivewaywise and we will be monitoring both the sales and claims on such policies to ensure protection not just for customers but also for contractors.