Deposit Protection Insurance

What is Deposit Protection Insurance?

Customers are often asked to pay a deposit when they place an order for double glazing, a conservatory, doors, facias or other associated products. This is normal practice for most installation companies as this helps safeguard them against manufacturing products they probably will not be able to use elsewhere should the customer cancel the order.

However, some people in the past have paid deposits only to find the company has ceased trading before the installation has begun. In these cases, most times, the customer loses their deposit and is in the unfortunate position of having to find another competent contractor and negotiate a new price and pay another deposit before the work can commence.

Using DGCOS accredited installers eliminates this problem. The installer will provide deposit indemnity protection which helps ensure no loss of deposit in the event of the installer ceasing to trade.

How Much of the Deposit will the Policy Cover?

The policy will cover any deposit you pay in full to a maximum of 25% of the total contract price (the maximum deposit coverage is £10,000). Customers should ensure that they receive a receipt from their installation company, and the correct documentation from the insurance provider. These documents should be kept in a safe place.

How Long will the Policy last?

A DGCOS approved deposit indemnity policy will last for 2 -3 months from the receipt of payment of the deposit, or until the start of the works or until cancellation of the contract whichever is the sooner.

Making a Claim?

A claim can be made simply by contacting the insurance provider directly in writing within 30 days of learning of the ceasing of trading of the installer, providing suitable proof of payment and a copy of the Insurance documentation (the Insurance Documentation will normally have been forwarded to the customer by The Insurers within a few days of paying the deposit to the installer).

What Happens Next?

The Insurers then have the option of either arranging the completion of the insured works for a fair market price, less the deposit paid, or refund the deposit paid to the Person Insured.

For further information on Deposit Protection please use the contact tab