An Insurance Backed Guarantee (IBG) is an insurance policy that backs the original workmanship guarantee an installer gives a homeowner, so that if the installing company ceases trading during the guarantee period, the homeowner can still claim against the insurer rather than being left with a guarantee from a company that no longer exists.

What an IBG actually covers

An IBG covers the product and workmanship included in the installer’s own written guarantee, subject to the insurer’s terms and conditions, for the length of that guarantee period, which commonly runs somewhere between two and ten years depending on the installer and the work involved. If the company that fitted the boiler stops trading during that period, the IBG is what allows the homeowner to make a claim against an insurer instead of against a company that has disappeared, effectively keeping the original guarantee alive in a different form.

How it differs from deposit protection

An IBG is a separate protection from deposit and stage-payment protection, which covers money paid before or during the installation if the company goes out of business before finishing the job. Deposit protection is about money already handed over for work not yet completed; an IBG is about the guarantee on work that has already been completed and paid for. Where both protections are provided by the same scheme, a homeowner typically receives two separate certificates, one for each type of cover, reflecting the fact that they protect different stages and different risks.

Why Consumer Codes require it

Consumer Codes that operate alongside certification bodies such as MCS place an obligation on their member installers to provide an IBG, on top of the workmanship guarantee itself, as a condition of membership. This is specifically intended to give homeowners a stronger level of protection than a written guarantee alone, since a guarantee from a company that no longer trades has no practical value without something backing it independently of that company’s continued existence.

When cover actually starts

Protection under an IBG generally applies once the installation has been completed to a satisfactory standard and the homeowner has made all agreed payments, rather than covering the period while work is still ongoing or part-paid, which is the gap deposit and stage-payment protection is designed to fill instead. This distinction matters because a homeowner disputing unfinished or unpaid-for work is in a different position, covered by a different product, from one whose completed installation later develops a fault after the installer has gone out of business.

Making a claim if the installer has gone

Where an installer has ceased trading and a covered fault later appears within the guarantee period, the homeowner claims directly against the insurer named on the IBG certificate issued at the time of installation, rather than trying to locate the defunct company. This is why keeping the IBG certificate, along with the original workmanship guarantee, invoice and commissioning paperwork, matters well beyond the installation date itself; without it, establishing which insurer and which policy actually cover a particular installation becomes far harder.

Checking your installer provides one

Before booking a boiler installation, asking the installer directly whether an IBG is included, which Consumer Code or certification scheme it is provided under, and requesting the actual certificate once the job is complete are reasonable steps that cost nothing and materially change what happens if the company later stops trading. Not every installer provides one as standard, so confirming it in advance, rather than assuming it is automatically included, is worth doing before signing a contract.

FAQs

Does an Insurance Backed Guarantee cover a deposit I paid before work started?

No. That is covered by separate deposit and stage-payment protection; an IBG covers the workmanship guarantee on completed, paid-for work.

How long does IBG cover typically last?

It generally matches the length of the installer’s own written workmanship guarantee, commonly somewhere between two and ten years.

Do all boiler installers have to provide an IBG?

Not automatically. Installers registered under Consumer Codes that work alongside schemes like MCS are typically required to provide one as a condition of membership, but this should still be confirmed directly.

Who do I claim against if my installer has gone out of business?

The insurer named on the IBG certificate issued at the time of installation, not the defunct installing company.

Bottom line

An Insurance Backed Guarantee underwrites a boiler installer’s own workmanship guarantee, so that a homeowner can still claim against an insurer if the installing company ceases trading during the guarantee period, separately from deposit protection covering money paid before the work was finished. Confirming an IBG is included, and keeping the certificate safe, is worth doing before and after any installation. This is general information, not advice on a specific guarantee or policy; the certificate issued for a particular installation confirms what applies.

Sources

This guide draws on the following primary sources, current as of 22 September 2026:

• HIES Consumer Code, “Insurance Backed Guarantees (IBG)”

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Best Boiler Deals is an independent guide. We may earn a fee from some links; this never affects what we write. This article is general information, not regulated advice on any specific installation — always confirm the details with a Gas Safe registered engineer.