We have partnered with the UK’s only provider of Personal Guarantee Insurance. We know Personal Guarantees aren’t popular but often they are unavoidable to get your finance agreement over the line.

As a condition of raising business finance, Directors are often required to provide additional security to the lender by signing a Personal Guarantee. By signing a Personal Guarantee, you as a director place your personal estate at risk; if the business fails the lender can seek recoveries from the you personally.

This now gives us the opportunity to provide you with a policy that can protect your guarantees on any finance agreements, new or existing.

What is Personal Guarantee Insurance?

Personal Guarantee Insurance is an annual policy designed specifically for business owners. It provides protection if a business lender calls on your Personal Guarantee following insolvency. This insurance offers a safety net, helping you safeguard your personal financial position.

The key features of the insurance include:

• 80% cover for PGs signed in support of secured finance.
• 60% cover in the first year for PGs attached to unsecured finance, rising to 70% in year two, then 80% in year three and thereafter.
• A maximum level of cover of £550,000 for secured loans and £400,000 for unsecured loans.
• Unlimited access to the Business Support Service which provides invaluable support during financial difficulties.
• £10,000 cover for a professional debt negotiator to arrange settlement with the lender.
• Cover for multiple Directors on one Policy at no extra cost if the PG is signed on a joint and several liability basis.
• Cover for multiple guarantees on one Policy.

Personal Guarantee Insurance is available against a wide range of business loans, including invoice finance, asset-based loans, commercial mortgages, peer-to-peer loans, development loans and more. Why not have an informal chat with Purbeck and make sure that you are not risking your personal estate unnecessarily.