Personal Guarantee Insurance
Insurance Cover for business owners who have signed a PG
Personal Guarantee Insurance is an annual insurance policy that provides Directors and business owners with cover in the event that a lender calls on their Personal Guarantee following default.
How does it work?
Personal Guarantee Insurance protects your personal assets if your business faces insolvency. We have partnered with a specialist in this field to provide you with a solution which protects your home, savings and pension if your lender calls in a personal guarantee.
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 £400,000 for secured loans and £300,000 for unsecured loans.
· £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.
Frequently Asked Questions
PGI is available to Directors of Limited Companies or Partners of Limited Liability Partnerships based in the UK.
The provider can cover PGs attached to a wide range of business loans, including asset finance, commercial mortgages, invoice finance, overdrafts, peer to peer loans and other secured or unsecured loans. If in doubt, we would recommend speaking with a member of the their support team to see if your current requirement is insurable.
Purbeck offer a maximum level of cover of £400,000 for secured loans and £300,000 for unsecured loans.
No problem! You can add up to five Directors to one Policy at no extra cost if the PG has been signed ‘jointly and severally’.
They can group certain PGs together on one Policy. If you have two PGs attached to secured lending, for example, you could have one Policy that covers them both.
PGI is an annual Policy - every year the the team will get in touch to discuss your requirements and issue a new 12-month premium that reflects the most accurate PG amount. Typically, as you pay off your loan, your sum insured will reduce and your premiums along with it!
Premiums are calculated on a case-by-case basis, so it’s hard to give an accurate indication. As a rough guide though, premium rates are somewhere between 1.6% and 3.6% of the PG amount.
How do I Apply?
Get in touch today for a no-obligation quote by clicking the button below.
If you choose to accept a product the provider, at their discretion may offer you, we will receive a fixed fee of 10% of the paid net premium. This will not affect the price payable by yourself or your business
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Registered in England and Wales no. 10591615. Registered office: 5 Prospect Place, Millennium Way, Pride Park, Derby, DE24 8HG.
Female Founder Finance is a trading style of Vernon Projects Limited which is an independent commercial finance broker not a lender, as such can introduce you to a wide range of finance providers depending on your requirements and individual circumstances. We are not independent financial advisors and so are unable to provide you with independent financial advice. Female Founder Finance may receive a payment (s) or other benefits from the finance provider if you decide to enter into an agreement with them. Vernon Projects Limited is Authorised and Regulated by the Financial Conduct Authority No. 1005423
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