Insurance Backed Guarantees
Why Regulation Matters for Consumer Protection
18th February 2026.
When installers choose a guarantee to offer their customers, it is often assumed that all guarantees provide a similar level of financial protection.
In reality, they do not.
Different types of guarantees are subject to different legal and regulatory frameworks, and those differences often only become apparent when something goes wrong, such as when an installer exits the market or a guarantee provider fails.
Understanding these differences matters for homeowners, but it also matters for installers whose reputation, compliance and long-term risk depend on the protections they put in place.
At Qualitymark Protection, our purpose is to help ensure consumers are protected and installers can operate with confidence. That starts with being clear about the differences between regulated and unregulated guarantees.
What is an Insurance Backed Guarantee?
An Insurance Backed Guarantee (IBG) is designed to protect the homeowner if installation work is defective and the installer is no longer able to put it right.
However, the term “guarantee” is used widely across the market to describe different legal and regulatory frameworks.
IBGs are backed by FCA-regulated insurance. Other “guarantees” are contractual schemes that sit outside insurance regulation. To a homeowner, these may appear similar, but they can lead to very different outcomes if problems arise.
Why does regulation matter?
Where a guarantee is backed by a regulated insurer:
- The insurer must meet strict financial and conduct standards.
- The insurer is legally required to have the financial resources to back claims.
- There are clear rules on how claims are managed and how customers are treated.
- If the insurer fails, eligible consumers are protected by the Financial Services Compensation Scheme (FSCS).
This framework exists to reduce the risk of failure and to ensure consumers are not left without redress. By contrast, unregulated guarantees often rely solely on contractual promises and are not subject to the same financial safeguards or statutory protections if the provider fails.
What happens when things go wrong?
The real test of any consumer protection is not how it looks on paper, but what happens when an installer or a provider can no longer meet its obligations.
With regulated IBGs, there is a clear and established goal to get the consumer back to a compliant and effective installation.
With unregulated schemes, outcomes depend on the provider’s own resources and willingness to act, with no statutory safety net. This distinction matters most to homeowners, but it also matters to installers whose reputation depends on the protection they offer.
Supporting installers and consumers
Installers face a complex regulatory landscape and must make informed choices about the guarantees they offer their customers. Those choices should be based on:
- Long-term consumer outcomes.
- Confidence that protection will still be there in the long term.
- Giving consumers clarity and consistency, not confusion.
Looking ahead
As the government continues to focus on improving standards, accountability and consumer protection in the home improvement and retrofit markets, clarity around guarantees will become increasingly important.
At Qualitymark Protection we believe that:
- Like-for-like protections should be subject to consistent standards
- Consumers should not have to understand regulatory nuances to be protected.
- Regulation plays a vital role in maintaining trust and resilience in the sector.
We will continue to support a constructive, evidence-led conversation. A discussion that puts consumers at the heart of the protection offering and helps installers do the right thing with confidence.