Personal Guarantee Insurance

We have helped resolve thousands of cases worth over one hundred million pounds in the 11 years, serving businesses throughout the UK. With that experience we are best able to manage the process of dealing with personal guarantees (PG), ensuring business owners and directors remain informed and protected throughout the process.

Offering a PG as assurance for credit can often be the only option. But before you put pen to paper you should be fully aware of the pitfalls and the potential consequences that could arrive should it be enforced.

Years of experience enables us to deliver in-depth and proactive guidance so that you can understand the full implications of the documentation you are about to sign. Whether it’s for a business loan, property lease, trade supply deal, asset lease agreement, or any other type of PG, working together, we ensure you receive considered and timely advice that will allow you to make an informed decision.

What is Personal Guarantee Insurance?

Personal Guarantee Insurance (PGI) provides protection for a director or directors  who have personally guaranteed a loan taken out by a company.. Directors providing personal guarantees allow businesses to access credit that will enable them to sustain their operations and provide the opportunity for expansion. They are particularly attractive to SMEs who may not otherwise be able to secure the type of funding they need to support their business.  For creditors, Personal Guarantees provide a certain amount of protection against the money they are loaning to a company. It also enables them to continue working with new enterprises in the business community to provide a platform for many businesses may not typically have access to.  However, there are risks involved, and before signing a personal guarantee close attention must be paid to the finer details of the agreement. Should the business fall into difficulty and the person who signed the personal guarantee is asked to repay it can have a heavy impact on their personal finances.  Taking out a Personal Guarantee Insurance can provide coverage for up to 80% of the remaining amount. This will depend on the amount of cover purchased through the agreement and the terms stated on the policy. 

How can you insure a Personal Guarantee?

When the company initially applies to take out a loan, it is almost impossible to know if there will be any change to the company’s circumstances in the years to come. The company applies for the funds with the best of intentions, hoping to use the additional finance to help support and grow your business. 

However, due to the unexpected nature of the business world, events may happen that mean the company is unable to keep up repayments at a later date. This is often through no fault of your own but means bearing the personal responsibility of repaying a large loan which can be extremely stressful. 

This is why taking out insurance against a personal guarantee should be considered. It offers some peace of mind and protection in the event the company defaults on the loan and the personal guarantee is called in by the creditor.

The amount and cost of insurance cover available will vary as it is subject to a credit check on the company and  each case is assessed on its own merits based on your company’s unique circumstances.

Insurance can be taken out either by the directors individually or on behalf of the directors by the limited company or LLP. And, if required, multiple guarantors can be included on a single policy.

When do you need Personal Guarantee Insurance?

If the company has taken out a  loan with a creditor that has required you to offer a Personal Guarantee and the company is unable to pay it back in full, the personal guarantee is likely to be called in once it defaults.

Business owners or directors that find themselves in this situation might benefit from having PGI in place depending on its availability and affordability. It is also important to remember that a PGI is not always appropriate or available as each case is assessed on an individual basis.

We do not provide insurance ourselves but can put you in contact with organisations that do.

If personal guarantee insurance is not made available for you or you choose not to take it, our team are available to discuss other options by which your potential personal guarantee liability can be mitigated and therefore provide alternative methods to alleviate your current situation.

To find out more about how we can help you, get in touch with us to today to see what solutions we have available. 

Why Choose Personal Guarantee?

We have a proven-process for client success

Proactive, Ongoing Assistance and Guidance

Knowledge and Resource in Banking and Finance

Expertise in Settlement and Case Resolution


6 Essential Tips to Resolve Your Personal Guarantee Issues – lots of helpful advice to start the process and keep you informed. Download our 8-page PDF now.