If you have plans to grow your business, it’s natural that you may consider taking a loan to invest in that expansion. Personal Guarantee Insurance (PGI) provides vital peace of mind if you are asked to be a guarantor for that loan. 

    • Protection for your personal assets
    • Joint policies available for all guarantors
    • Cover available for both secured and unsecured loans
    • Premium payment plans available

How does Personal Guarantee Insurance work?

If a business is looking to secure a loan but it has no assets, lenders will ask partners or directors to sign a personal guarantee of payment. 

This legal document declares that the individuals’ personal assets (i.e. their homes), could be sold to pay the loan if the business becomes insolvent.

While this may seem unlikely at the time of signing for the loan, a change in market conditions or a client’s failure to pay their bills could mean your fortunes change, putting your collateral at risk.

Personal Guarantee Insurance is an annual policy designed to provide peace of mind. It typically covers 60-80% of the loan value. If the worst happens, the business directors could make a claim on their insurance for the funds, instead of selling their assets.

Please note: A Personal Guarantee Insurance policy only protects the director(s) who have signed the personal guarantee – it does not cover all directors and shareholders within the business. The proposal form can be completed by the first director and every extra director must complete the ‘Extra Directors Form’. Please send completed forms to james.skilleter@onebroker.co.uk.

Can my business pay for the PGI premiums?

Yes. Because the insurance is covering a business loan, the premium payments are a business expense.

Can Personal Guarantee Insurance cover more than one person?

Yes, it can protect you and other guarantors. These might be business partners or other directors.  

The director with the largest shareholding must be named first with all other directors endorsed.

What is the maximum limit of indemnity?

We work with a leading UK insurer to arrange Personal Guarantee policies up to the value of £300,000. Consideration can be given to £400,000 but is subject to your credit score and insurer acceptance.

Can I have more than one PGI policy?

Yes, but not for the same company.

Can I make adjustments to the policy?

Absolutely. The policy is flexible. As long as all of the information is correct and meets the terms of the policy, you can make changes.

Can I pay my Personal Guarantee premium in instalments?

Instalment facilities are available subject to approval. Please note that the Guarantee Insurance policy will only commence when the insurer has received payment.

Can the policy cover my overseas business?

Not directly. Policies can only be issued if the main business is registered in the UK.

Why choose One Broker for Personal Guarantee Insurance?

As an established insurance broker, we work with a specialist insurer in order to arrange PGI for numerous organisations. 

How much does Personal Guarantee Insurance cost?

The cost varies depending on a number of factors, including the value and type of loan, the nature of your business and its credit score.

Give us a call to find out more today.