Protect your personal wealth when you sign a guarantee
Lenders often ask directors to sign a personal guarantee before releasing business finance. If the business later becomes insolvent and the lender calls on that guarantee, Personal Guarantee Insurance pays a fixed percentage of what you owe.
Available for new or existing guarantees, across secured and unsecured lending, for one or more directors.
- Policy term
- Annual
- Cover level
- Up to 80%
- Maximum cover
- Up to £750,000
- Quotation
- In minutes
Focus on growing your business, knowing your home and savings have a layer of protection behind them.
Cover pays a fixed percentage of the amount the lender calls on, not the full balance, and is subject to the policy terms and exclusions. Please read the policy wording carefully, including the notifiable events you must tell us about.
What is a personal guarantee?
As a condition of raising business finance, directors are often asked to give the lender extra security by signing a personal guarantee.
By signing, you place your personal estate at risk. If the business fails, the lender can seek to recover what it is owed from you personally.
Things can go wrong for reasons outside your control: a customer or supplier failing, regulatory change, or wider economic conditions.
How the insurance helps
Personal Guarantee Insurance is an annual policy that covers directors if the business lender calls on their personal guarantee following insolvency.
It can reduce the financial impact on you and help prevent the loss of personal wealth, so you can sign with more confidence and focus on your growth plans.
Cover by type of lending
| Feature | Secured loans | Unsecured loans |
|---|---|---|
| Policy term | Annual policy | Annual policy |
| Cover (fixed percentage) | 80% from year one onwards | Year one: 60% Year two: 70% Year three onwards: 80% |
| Maximum cover | £750,000 | £500,000 |
| Payment options | Annual or monthly | Annual or monthly |
| Business Support Services | Unlimited access | Unlimited access |
Secured loans
Where the lender has a charge, debenture or right of title over business assets.
- Asset finance
- Commercial mortgages
- Invoice finance
- Other secured loans
Unsecured loans
Where the lender has no charge, debenture or right of title over business assets.
- Credit cards
- Overdrafts
- Peer-to-peer loans
- Short-term working capital loans
- Other unsecured loans
From quotation to ongoing support
1Tell us about your guarantee
Share some details about your business, the lender and the guarantee you have given or are about to give.
2Receive a quotation in minutes
We come back to you with a quotation, setting out the level of cover and the annual or monthly payment options.
3Include every guarantee and guarantor
Cover is available for new or existing guarantees, across secured and unsecured lending, for one or more directors.
4Use Business Support Services at any time
Every policy includes unlimited access to Business Support Services throughout the policy term.
5Tell us early about notifiable events
Your policy wording sets out the notifiable events you must tell us about. Letting us know early helps protect your cover.
Personal Guarantee Insurance Enquiry
Tell us a little about your business and the guarantee you have given or are about to give. We will come back to you with a quotation.
Personal Guarantee Insurance is underwritten by an A-rated insurer. Cover is subject to the policy terms, conditions and exclusions.