Competent Person FAQ

• Why must I submit my customer details to you?
• Part of the terms of you being self-certified is that you must also provide your customers with the facility to obtain an Insurance Backed Guarantee (Part L Building Regulations).
• Why can I not offer the Insurance myself?
• Insurance is a financial service regulated by the FSA (Financial Services Authority). Therefore you must be registered with an FSA authorised provider like ourselves, so that we can do this on your behalf.
• How can I send my customer details to you?
• Three options, fax, email or via postal mail. If you would like to fax or post, please use our Completion Advice Notes. If you would like to email, please download a spreadsheet from our website or I can email it directly to you.
• Why must I re-register?
• Because your account has been inactive for six months or more and now requires activation through re-registration. Your Direct Debit could have been cancelled by your bank in this time and we also need to conduct company / financial checks at regular intervals as it is your solvency that we are insuring.
• Why must I pay a Registration Charge?
• This is in respect of financial vetting and company searches and is standard procedure.
• Why must I send in my Workmanship Guarantee?
• If your company ceases to trade, it is this guarantee that we would "mirror" if a claim were made by your customer(s) thereafter. So it is important that we are able to process and approve this document with our insurer. This document is in fact the insurable interest and is vital part of your registration with us.
• What if I dont have a Workmanship Guarantee?
• We are able to send to you a Specimen Standard Market Guarantee Wording which you can transfer onto your headed paper.
• What is a Personal Guarantee and why do I need to sign it?
• A Personal Guarantee allows the Director(s) of a company to take personal responsibility for their own solvency (for up to 2 years). Usually, we will require a Personal Guarantee if a companys first set of management accounts have not been declared with Companies House, meaning we cannot conduct our usual company checks in respect of financial vetting, etc.
• Why should I send in backdated submissions?
• Not only is it your obligation to do so (under Part L, terms of self certification) but also it is in your customers interest to receive such cover. It is protection for them in case your company ceases to trade and in the future, if your customer decides to sell their property, they may be asked for an Insurance Backed Guarantee by a solicitor. They would eventually be re-directed to you as the installing contractor for an explanation as to why this cover was never requested.
• Why must I pay £13.78 per contract to process backdated jobs, if I am on the offer scheme?
• The offer scheme only applies to jobs sent into us pre-installation. As your submissions are now post-installation, they will need to be processed on the full cover scheme charged at £13.78 per contract.
• Why is Insurance Required?
• A contractor will show confidence in his workmanship by giving written guarantees ranging between 12 months and 10 years for the majority of home improvement contracts. If a fault arises during the guarantee period the contractor would normally call to fix the problem at no charge. However a contractor cannot give absolute assurance as to the length of time he will be in business and therefore be able to honour his guarantee. For this reason a professional contractor should always provide insurance cover, which will honour his guarantee, in the unlikely event of him ceasing to trade.
• What is covered?
• The Insurance Backed guarantee mirrors the terms of the installing contractors written guarantee. If the contractor ceases to trade due to the definitions on the policy then the insurance takes place of the installers guarantee.
• Is the Cover transferable?
• If the contractors written guarantee states that it is transferable to subsequent owners of the property then the insurance cover will also transfer automatically to the new owner.
• What is the policy term?
• The policy term reflects the number of years guaranteed by the contractor, which for many trades is up to 10 years, and the cover commenced from the date the contract is satisfactorily completed.
• Who protects me?
• The Insurance is underwritten by Guarantee Protection Insurance Limited or Millburn Insurance Company Limited. Both of these insurers specialise in this type of insurance and are authorised and regulated by the Financial Services Authority.
• How can I protect myself against cowboy operators?
• Many contractors set high standards of workmanship and materials and often a recommendation from a friend or colleague can be the best advice. It is good to look at the contractors membership of trade organisations, as often they will have been set stringent levels of criteria to gain the title of registered installer.
• How can I claim?
• If a fault is discovered in the original works after the contractor has ceased trading for an insured reason 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 honour their guarantee, you would lodge 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 defect up to the limit of the original contract price.
• How long does my Deposit Insurance last?
• Deposit cover ends upon the commencement of the work, the cancellation or the contract or 90 days from the date deposit paid, whichever is the sooner.
• CERTASS/BSi/FENSA
• Following changes to Part L of the building regulations, which took effect from 1st April 2002, glazing contractors in England and Wales who are registered with CERTASS, BSI, or FENSA can self certify their domestic window and door installations without the need to go through Local Authority Building Control to obtain permission to carry out this type of work. A condition of registration is that insurance is offered to consumers on every such contract carried out by a glazing contractor. Deposit Protection Insurance may also be mandatory.