During the Covid-19 crisis, we are following UK Government guidance to keep our employees safe and look after our valued clients. Read our articles on support for your business.

You can also help us help your fellow businesses - as well as your favourite charity - at this difficult time by recommending us to someone you feel would benefit from our insurance.

Personal Guarantee Insurance

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.

What is personal guarantee insurance?

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

Why you need personal guarantee insurance

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.

Benefits of personal guarantee insurance

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.

Key features of our personal guarantee insurance

  1. Competitive premiums and cover available across a wide range of business loans
  2. Insurance available for:
    • Existing or new personal guarantees
    • Multiple personal guarantees
    • Cover for more than one guarantor
  3. Unlimited access to business support services, specialist advisors who are at your side should your organisation need advice
  4. Insurance policy underwritten by Markel International, an A-rated leading insurer

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

Policy term:

Annual policy

Annual policy

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%

Payment terms:

Annual or monthly payment options available

Annual or monthly payment options available

Maximum level of cover:

£400,000

£300,000

Access to Business Support Services:

Yes - unlimited

Yes - unlimited

 

Personal guarantee insurance FAQs

How can personal guarantee insurance help if my business has financial or trading difficulties?

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:

  • County Court judgements
  • Inability to repay debts or creditors as they fall due
  • Unexpected expenditure which cannot be met from available cash resources

When you make us aware of a notifiable event we will introduce you to our business support services.

What is the business support service?

The business support service may help you by introducing you to specialists in:

  • Business recovery
  • Cash flow management
  • Credit control management
  • Debt management
  • Financial restructuring
  • Invoice disputes

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.

Does your personal guarantee insurance cover multiple guarantees?

Yes, we can include multiple guarantees on your policy if you have two or more guarantors in place.

Does your personal guarantee insurance cover more than one guarantor?

Yes, where the personal guarantee has been signed by two or more directors ‘jointly and severally’ we can include additional directors on your policy.

Get a personal guarantee insurance quote

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Coronavirus (Covid-19) – Update for Towergate customers


During the COVID-19 Coronavirus crisis, we want to reassure our customers and partners that we are following UK Government guidance,
and as a result our national offices are closed to both safeguard the health of our employees and our ability to look after our valued clients.
Where possible, our employees are working from home and we are still fully able to support with renewals, new cover requirements and
claims guidance and support. This includes giving our colleagues the ability to work from home or alternative locations,
which we hope will limit the disruption and enable you to speak to us for advice and support should you need it.
Read more