If the fault is discovered in the original works after the contractor
has ceased trading i.e. due to Liquidation, Receivership, administration
or the winding up of the company due to bankruptcy, state retirement
or death of the principal(s) and is therefore unable to honor their
guarantee, you would lodge a claim.
A report would be prepared by another contractor to determine
the cause of the problem and if the fault(s) would have been covered
by the terms of the contractors written guarantee then the insurance
will meet the reasonable costs of rectifying the defects up to the
limited of the original contract price.
is the policy term?
Usually the policy term is linked to the number of years guaranteed
by the contractor, which for many trades is up to 10 years and the
cover commences from the date the contract is satisfactorily completed.
Upon receipt of premium the Certificate of Insurance is issued.
Who protects me?
The insurance is underwritten by Guarantee Protection Insurance