As a condition of raising business finance, directors are often required to provide additional security to the lender by signing a personal guarantee. By doing so, the director is placing his or her personal estate at risk: if the business fails the lender can seek recoveries from the director personally. We can offer personal guarantee insurance for business borrowing for up to £400,000 or up to £300,000 for unsecure loans.
Personal guarantee insurance is an annual insurance policy that provides directors with cover in the event the business lender calls on their personal guarantee following insolvency.
It is designed to give directors the confidence to do business, focus on growth objectives.
Our personal guarantee insurance is underwritten by Markel, via our partner Purbeck Insurance Services. Click below for a quote.
In most cases, signing a personal guarantee can be a key component in securing business finance. Directors are, therefore, willing to provide a personal guarantee to secure business finance so their business is able to pursue its growth objectives.
However, if things occur outside of your control - such as a failure of customers or suppliers, regulatory changes or unfavourable macroeconomic factors - as a director, you need to be able to protect yourself
In the unfortunate event the business becomes insolvent, the lender can call on the personal guarantee to recover some of the shortfalls due on the outstanding finance obligations that the business owes to the lender.
Personal guarantee insurance can therefore prevent the loss of your personal wealth.
The level of cover available is subject to whether the personal guarantee is attached to a secured business loan or an unsecured business loan:
Secured loans |
Unsecured loans |
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Policy term: |
Annual policy |
Annual policy |
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Details of cover: |
Cover is based on a fixed percentage: • Year one and thereafter: 80% |
Cover is based on a fixed percentage: • Year one: 60% • Year two: 70% • Year three and thereafter: 80% |
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Payment terms: |
Annual or monthly payment options available |
Annual or monthly payment options available |
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Maximum level of cover: |
£400,000 |
£300,000 |
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Access to Business Support Services: |
Yes - unlimited |
Yes - unlimited |
We are at your side and here to help. Your business may at time suffer from any one of a number of financial or trading difficulties. It is important that we are notified as soon as you become aware of any of these 'notifiable events'.
You need to read your policy carefully to ensure you are aware of all such situations. Examples include:
When you make us aware of a notifiable event we will introduce you to our business support services.
The business support service may help you by introducing you to specialists in:
The support desk is staffed by experienced business advisers who are available to help you in order to support any financial issues your business faces. They are committed to working with you to ensure that your business continues to be successful.
The business support service is available to you at any time and not just following a notifiable event.
Yes, we can include multiple guarantees on your policy if you have two or more guarantors in place.
Yes, where the personal guarantee has been signed by two or more directors ‘jointly and severally’ we can include additional directors on your policy.
Our personal guarantee insurance is provided by our partner Purbeck Insurance Services. Click below for a quote.
Purbeck Insurance Services is a trading name of Purbeck UK Limited which is directly authorised and regulated by the Financial Conduct Authority in respect of Insurance Mediation on a non-advised basis.
This means that they do not provide advice or recommendations in respect of their products.
You should seek your own independent advice if you need to know whether their product meets your requirements.