What is deposit and stage payment protection?
It is normal practice for installation companies to request a deposit or stage payment to safeguard them against manufacturing products they probably will not be able to use elsewhere should the customer cancel the order.
How much of the deposit or stage payment is covered?
Usually, the policy will cover any deposit or stage payment you pay, in full, to a maximum of 25% of the total contract price (maximum £50,000). However, due to this challenging COVID-19 period, the level of combined cover for deposit and stage payments will be a maximum of £5000 (as of 1st June 2020). This continues to be under constant review.
Customers should still 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?
The policy will last for 120 days after the date of payment of the deposit, or upon completion of the contract, whichever is the earliest.
Why do I need deposit and stage payment protection insurance?
In the past, people have paid deposits or stage payments, only to find the company has ceased trading before the installation has begun. In these cases, most times, the customer loses their deposit or stage payment and is in the unfortunate position of having to find another contractor, negotiate a new price and make another payment before the work can commence.
Using HIES accredited installers eliminates this problem.Find a HIES accredited installer
What happens once a deposit has been paid?
Once you have signed a contract with a HIES member and paid your deposit, the member must register your details online with HIES within 48 hours. We will then send your:
- Customer Registration Certificate – confirming your details are registered with HIES and the comprehensive protection provided to you.
- Deposit & Stage Payment Protection Certificate – this protects any deposits or stage payments you may make to the supplier.
Please keep the above documentation in a safe place along with any contractual documentation.
How do I make a claim?
A claim can be made simply by contacting the insurance provider directly and they will ask you to complete a claim form and submit this together with evidence of your contract with the HIES member and proof of payment.