Liquasil Guarantee Options
A specifiers guide to construction industry product and insurance guarantees.
Liquasil is dedicated to providing specifiers, installers and end users of our roof & cladding coating systems with all of the information they require to make informed decisions about the type of guarantee they require on their coating projects.
Changes in the construction insurance sector in 2020 mean that the information provided on this page has been modified.
Information provided here is to help you understand your options given the changes as we understand them – nothing presented here is to be considered as being professional advice.
To find out more, call now on 0121 709 5352.
Product-Only Warranties or Insurance Guarantees?
In line with most manufacturers, Liquasil products come with product warranties of up to 20 years, depending on the system being installed.
But is a product-only warranty enough for your or your clients needs?
You can download a specimen of our product-only warranty by clicking here.
If you require something more substantial, for example, an insurance backed guarantee or a latent defects, full insurance guarantee, these may be available via your Liquasil Approved Installer at extra cost.
It’s your choice and for this reason, we have highlighted the options for you on this page.
In 2018, the construction insurance guarantees market underwent significant change, with a number of insurers withdrawing from the sector.
Early in 2020, there was a further reduction in the number of rated insurers able to provide insurance guarantees – and at the time of writing, only one A Rated insurer is writing new policies, which means that they are likely to be expensive.
We are happy to discuss options with installers, specifiers and end users if required, but ultimately, we will refer anything we consider to be “Professional Advice” to a specialist constructioin industry broker, authorised and regulated by the Financial Conduct Authority.
When a product warranty is offered on a coating system, it only provides for replacement of product in the event of a failure. It specifically excludes labour and access costs, as well as any fault or condition of the substrate to which it is applied.
By their nature, product-only warranties are extremely limited in their scope, since a manufacturer only makes products – they don’t install them!
The most common causes of failure of an installed product are:
- Insufficient surface preparation
- Application in wet or damp conditions
- Issues with substrate
- Insufficient film weights (spreading the coating too far and too thinly)
- Trapped moisture
Product-only warranties are available for all products, including our own, but please be aware of the limitations of this type of warranty – it does not guarantee your roof or cladding in any way.
In the event of a manufacturing fault resulting in an installation failure, the remedy is for the manufacturer to provide replacement product to the value of that required to repair the area of failure(s). Installation cost will be excluded.
Insurance Backed Guarantees
Insurance backed guarantees have been around for a long time and are often used for domestic installations of construction projects.
In recent years, they have also become popular in the commercial property sector, but there is a lot to consider before you jump into an insurance backed guarantee.
The first thing to consider is the stability of the insurer. The stronger the better is the rule, so it’s best to look for an A-Rated insurer and to avoid any insurance policy provided by a non-rated insurer.
It’s also important to realise that an Insurance Backed Guarantee only provides cover in the event that the installing contractor goes into administration or cannot meet its repairing obligations.
Some insurance backed guarantees won’t pay out in the event that a contractor goes into liquidation in order to avoid a repairing obligation, so it’s important to check policy wording.
Contractors sometimes present clients with a manufacturer’s product warranty with an insurance backed guarantee in support. It is important that you also obtain a workmanship guarantee from the contractor.
The cost of insurance backed guarantees increased significantly in recent years and it is unlikely that a policy will be available for less than £1000 plus IPT.
Latent Defects Insurance Guarantee
An optional 12 year Latent Defects, full insurance guarantee may be available for Liquasil systems that have been installed by a Liquasil Approve Installer.
The policy provides the greatest level of cover available and is essentially a single-point guarantee provided over and above the limited product-only warranty.
Here’s how it works;
Your installer will be responsible for any remedial works that might be required under guarantee, for the first two years from the date of installation.
After two years, liability for warranty repairs transfers to the insurer who will arrange any necessary repairs at their cost.
The whole project is covered, so you won’t have to worry about the cost of safe access, labour or materials.
As with any insurance policy, an excess is payable and we understand this to be £1000 per claim at the time of writing.
A Latent Defects Insurance Guarantee can also include cover for Professional Design.
If you are a professional specifier, we’ll be happy to conduct one of our Accredited CPD training sessions for you – and explain our unique roof coatings and available warranties in more detail.
Latent Defects Insurance Guarantees are issued via a leading construction sector warranty insurance broker, who having worked with Liquasil and its approved installer network for a number of years now, understands the level of cover that is required.
Only pre-approved Liquasil installers are able to provide the 12 year Latent Defects Insurance Guarantee for Liquasil installations.
Policy costs are based on a percentage of the contract value, subject to a minimum £1000.
Note that it might not be worth insuring lower value installations, but we are happy to provide assistance in determining this.
This information is intended only as a summary of the benefits of the insurance policy.
If you are considering specifying a Latent Defects Insurance Guarantee, we can refer you to a specialist construction warranty insurer who will be able to provide a specimen poicy for your reference.
Is An Insurance Warranty Compulsory?
No. Insurance guarantees are optional. This is to provide clients and specifiers with greater choice and flexibility. We strongly recommend that you ask your installer to provide a workmanship warranty and that this is insurance-backed.
How Long Is The Product-Only Warranty
Product-Only warranties vary from 12 to 20 years. Optional Insurance Backed Guarantees and Latent Defects Insurance Guarantees are available through certain Liquasil Approved Installers for 10 or 12 years.
What Is The Cost of Warranties?
Product-Only warranties are free of charge. Insurance-backed and Latent Defects Insurance Guarantees vary in price according to scope and size of project, but with a minimum £1000 premium payable.
Are Jobs Inspected?
Yes. Projects undertaken by Approved Installer with product-only warranties are inspected by Liquasil or their appointed, independent auditors. Insured projects are inspected by the insurer’s independent auditors who have 100% authority for project sign-off.
Is There A Cost For Inspection?
Liquasil audits all qualifying projects that are undertaken by an Approved Installer. With insured projects, an independent auditor carries out the inspections and the fee for this is usually included in the policy premium. Liquasil will inspect smaller projects at a small cost.
What Is Covered On The Warranty?
Product-only warranties cover only manufacturing defects. Insurance-Backed Guarantees cover for contractor insolvency and little else. Latent Defects Insurance Guarantees cover Materials, Workmanship, Access and Professional Design.
Is An Excess Payable?
All construction industry insurance guarantees include an excess to be paid in the event of a claim. It is usually £1000 min, or 1% of cover value.
Is The Warranty Transferrable?
Yes and to do so involves a letter to the insurance scheme’s administrators to let them know of the new financial interest. This can be done at any time during the guarantee period.
Do All Installers Offer This Warranty?
Not necessarily. Insurers continually monitor and vet contractors to ensure they are financially stable. If you call us on 0121 709 5352, we can provide suitable, pre-approved installers.