Long-established scaffolding company whose insurances we have looked after for about 4 years. They acquired a building/roofing company which went well to start with but they were eventually let down badly by the Director of that division. They parted company but left our client with the responsibility of finishing on-going projects, which was not their speciality. Nevertheless, our client managed to complete the various projects, however the contractual need for an Insurance Backed Guarantee on one contract had been overlooked (possibly ignored) by the former Director. Our client was about to be sued by the main contractor as they had failed to put the Insurance Backed Guarantee in place.
Insurance Backed Guarantee’s can be difficult to source, particularly after the work has started and if there are any financial issues. In this instance, the work was almost finished and there were some queries over the financials, due to the separation of the companies, so we knew it would be tricky.
We managed to find a provider – at a reasonable premium – and place the cover in time to appease the main contractor.
We avoided legal action and having the Insurance Backed Guarantee in place enabled our client to be paid for their work. In fact, the client went on to win some more work from the main contractor.
Our client has never forgotten this and still mentions it occasionally as it was a very stressful time for them.
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