An IBG, or insurance backed guarantee, is an insurance policy that provides cover for a guarantee in the event the company that issued the guarantee ceases to trade.
IBGs are not guarantees themselves but insurance products that back guarantees. For this reason it can be more useful to refer to them as guarantee insurance policies or warranty insurance policies.
A guarantee insurance policy provides cover in the event that a company that has given a guarantee to a customer ceases to trade. If there is subsequently a problem with the installation that would otherwise have been resolved by the installer’s guarantee, a claim can be submitted to the IBG provider (assuming the homeowner in question has a policy).