Personal Guarantee Insurance
When you sign a Personal Guarantee it is more than your signature
on the line.
Directors can be required, as a condition of raising finance, to provide additional security to their lender by signing a Personal Guarantee. In doing so, the personal assets that many Directors have worked so hard to accumulate can be placed at risk.
Personal Guarantee Insurance covers losses arising on the final settlement made to a Lender under a Personal Guarantee agreement following the conclusion of an Insolvency Procedure.
When you sign a Personal Guarantee it is more than your signature on the line. Should your business lender decide to recover outstanding funds by calling in your Personal Guarantee this critical insurance provides you with cover.
The implications if a guarantee is called can be as light as losing a personal asset such as a car, a devastating loss of a home; or even the crippling situation of bankruptcy.
Taking out Personal Guarantee Insurance means that much of this risk can be minimised.
Available to both one or multiple guarantors, should the worst come to pass, Directors can therefore rest comfortably while knowing that their family assets will not be threatened.
The level of cover is varied as to whether the underlying finance facility is secured or unsecured. The unsecured cover works as a fixed percentage of the personal guarantee amount and would progress as follows:
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Year one: 60%
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Year two: 70%
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Year three and thereafter: 80%
Personal Guarantee Insurance covers losses arising on the final settlement made to a Lender under a Personal Guarantee agreement following the conclusion of an Insolvency Procedure.
Secured risks work slightly differently, the policy will cover 80% of whatever amount the Insurer agrees as a settlement on behalf of the policyholder with the lender, up to 80% of the guarantee amount. The annual premium is calculated based on the applicant's circumstances and the individual requirements of the applicant.
Our Promise
Working with us you will always get fast answers to any questions, exceptional customer service, bespoke cover and competitive pricing.
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No call centres.
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Competitively priced policies.
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We help you make any claims.
