Installers sometimes ask whether there is a policy that pays if STCs they have been paid for are later invalidated. As far as we are aware, there is no common off-the-shelf product designed for that. We are not insurance brokers, so treat this as a starting point for a conversation with yours rather than advice.
What might respond
Professional indemnity covers claims arising from errors in professional services. Whether a clawback counts depends on the wording; many policies exclude amounts that are really a repayment of money you received or a regulatory penalty or fine. Ask your broker whether your policy covers regulatory investigations and defence costs, which are more often available than the clawback amount itself.
Public liability covers injury and property damage. It does not usually respond to financial loss from an invalidated certificate.
Management liability or directors and officers cover can include regulatory investigation costs for a company, again with exclusions for fraud and deliberate acts.
Warranty or workmanship cover can help with defect rectification if an inspection finds poor installation, which is often the cause of the clawback in the first place.
No policy will pay out on fraud or deliberate false statements; see penalties for false photos and declarations.
What actually limits the risk
Insurance aside, the exposure shrinks in four ways.
- Evidence. Photos, serials, signed forms and accreditation details saved at the time of the job. See the photo requirements.
- Pre-lodgement checks. A second pair of eyes before the claim goes in catches missing photos, mismatched serials and wrong installation types. Read the top rejection reasons.
- The contract. Check how recovery works: offset against future payments, direct invoice, any cap or time limit, and what evidence the trader must show. The contract terms checklist goes through this.
- Cash buffer. A recovery by offset reduces your next payments. A modest reserve means a single failed job does not create a cash crunch.
Subcontractors
If you subcontract installs, back-to-back terms matter: make sure your subbie agreement allows you to recover from them what you must repay. Without it, the loss from their poor work lands on you. Our subcontractor rates page covers the commercial side.
What this means for installers
Treat clawback as a business risk to be managed rather than insured. Ask each trader how they pre-check, what their recovery terms are and how they communicate audit outcomes. Energy Merchants’ compliance desk pre-checks every claim before lodgement, which reduces but does not remove the risk. See how it works for the process.
For more on how clawbacks work, see who pays when CER takes back STCs and the STC trading overview.