Personal Guarantee Insurance
It is advisable to put Personal Guarantee Insurance in place if your business is looking to raise finance. This is because Company Directors can be required to provide additional security to the lender by signing a Personal Guarantee. Please talk to us for expert advice.
Personal Guarantee Insurance Provides Peace of Mind
The catch is that by signing a Personal Guarantee the personal estate of the Director can be placed at risk. In these circumstances Personal Guarantee Insurance could offer the peace of mind to go ahead and obtain the finance your business needs. In most cases, signing a Personal Guarantee can be the difference between securing the SME finance or not.
The problem is that despite the best intentions of the Company Directors, things can sometimes go wrong – things which are often outside of their control, such as the business failure of key customers or suppliers.
In the unfortunate event the business becomes insolvent, the lender may call on the Personal Guarantee to recover any shortfalls due on the outstanding finance obligations that the business owes to the lender and that can mean the Director loses his home and it can lead to personal insolvency.
How Personal Guarantee Insurance Works
Personal Guarantee Insurance has been designed to give Company Directors confidence to do business and focus on growth objectives.
This is an exclusive product backed by ‘A’ rated insurers.
The annual premium is calculated based on the individual circumstances and requirements of the director. The level of cover of Personal Guarantee Insurance is based on a fixed percentage that the director wishes to insure and this increases for each year that the policy is in place:
- Year one: 60%
- Year two: 70%
- Year three and thereafter: 80%
If you’d like a quote for Personal Guarantee Insurance, please click on the following link and/or call us to go through the process in person, and we will be very happy to discuss your exact requirements.
Whether you are a Manager, a Director or Proprietor of a business you can be assured of our expert advice and knowledge of this business sector. We are an award winning insurance broker in Tamworth, with a fantastic team of enthusiastic insurance specialists. From our Midlands base we serve clients from across the Staffordshire and West Midlands region and throughout the UK.
Would you like a quote or to find out more?
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