MCS announced that as of 16 December 2024 it is no longer an Appointed Representative of Independent Warranty (IWA), and that IWA Insurance Backed Guarantees (IBGs) can no longer be purchased through the MCS Installation Database (MID)1.
"as of the 16 December 2024, MCS is no longer an Appointed Representative of Independent Warranty (IWA). This means that you can no longer purchase an IWA Insurance Backed Guarantee (IBG) through the MCS Installation Database (MID)."
An IBG is an insurance policy that backs the original guarantee given by a contractor, providing cover for an installation if the MCS certified contractor ceases to trade during the term of the guarantee1. For domestic installations an IBG is required, and the installer must declare which organisation provided it when creating a certificate on the Installations Database1. MCS lists other providers installers could choose from, including the Consumer Protection Association, GGFi, Home Improvement Protection (HIP), HomePro, IWA, QANW, Quality Mark Protection/GDGC and IKNOWA1.
MCS states that the contractor must pay for the policy at the point of registering the installation with MCS, and that a policy is only valid once the premium has been paid and the physical policy issued to the consumer1. The period of cover should equal the maximum guarantee period provided by the installer, with a maximum of up to 10 years1. MCS also states that MCS approved financial protection products will replace IBGs as mandatory for installers under the redeveloped Scheme, and that these products are available to installers still operating under the current scheme, where MCS deems their use compliant in place of IBGs1.
Separately, MCS sets out the guarantees that apply to the work itself. Product guarantees must be provided to the consumer free of charge and be in line with any conditions in the MCS product standards, and by law they must not limit statutory rights1. Installers must guarantee the workmanship of the installation for a minimum of two years following installation, and that guarantee must be transferable to a new property owner if the customer sells the property1. MCS states that this workmanship guarantee must be insured so that it will be honoured if the company ceases to trade during the term of the guarantee offered1.
Why it matters for households
The change affects how one particular guarantee product is bought, not the guarantee itself. A household with an MCS certified installation still holds a workmanship guarantee of at least two years, and that guarantee must be insured against the installer ceasing to trade1. What has changed is the route: an IWA IBG can no longer be purchased through the MID, so any IWA policy arranged from 16 December 2024 sits outside that channel1. Other providers remain listed by MCS1.
For a home's energy independence, the guarantee is the backstop behind the equipment and the work. If an installer stops trading, an insured workmanship guarantee is what stands between the household and the cost of putting faulty work right, and the cover period should match the guarantee period offered, up to a maximum of 10 years1. Households checking paperwork may therefore want to confirm which organisation provided the IBG and that the policy was issued, since MCS states a policy is only valid once the premium has been paid and the physical policy issued to the consumer1. Statutory rights sit alongside these guarantees and cannot be limited by them; MCS notes a right to complain about faulty goods for up to six years after purchase, or within five years of the fault becoming apparent in Scotland1. Further detail on consumer rights for installation work and on deposit and guarantee protection under the HIES Consumer Code is held on this site, alongside the wider installers and retailers hub.
What happens next
MCS states that MCS approved financial protection products will replace IBGs as mandatory for installers under the redeveloped Scheme, and that they are already available for purchase by installers operating under the current scheme1. No date for that transition is given, and no further detail on the ending of the IWA arrangement has been reported1.
Sources1 cited
- Insurance Backed Guarantee Products - MCS, mcscertified.com