3 November 2014

Personal Guarantee Insurance

PGI Cover

Personal Guarantees

Pretty much every lender who lends to any incorporated company will ask for a personal guarantee. Personal Guarantees (or PG’s) mean that if the company cannot repay it’s borrowings then the guarantor becomes liable for them.

For lenders a PG provides a lot of benefits;

  • Statistically loans with a PG see a lower rate of default
  • A PG means that the company cannot be wound up and the loan written off
  • A PG means that the lender has something to negotiate with if the borrower fails

There are other benefits, but ultimately nearly every company lender will demand a personal guarantee from the directors (sometimes from other connected parties also).

Personal Guarantee Insurance

One of the biggest surprises to people is that they can take out insurance against the risk of having to pay out on the personal guarantee they have given.

For most people a PG will be the biggest liability they have when it comes to their company.

We have heard some advisors say to company directors that they should never give a personal guarantee. In an ideal world this makes complete sense, however when you need to raise finance and the giving of a guarantee is mandatory then what option do you have? A great compromise could be to mitigate your risk through insurance (please read the legal notice at the bottom of the page).

Lime Consultancy have teamed up with PGI Cover to provide an option to insure against your guarantee liabilities.

Key Questions About Personal Guarantee Insurance (PGI)

Why do I need PGI cover?

Personal Guarantee Insurance provides financial security and protection from the unforeseen. If you’ve ever given Personal Guarantees for loans, then that guarantee could one day be called upon leading to significant costs to you.

What does PGI cover?

Should your Personal Guarantee be called upon by the Lender, the Insurance will be in place to pay out the indemnified amount which may clear your liability to your Lender in full.

How Do I Get a Quote?

It is seriously simple. Click the PGI image below and it will take you to the quote screen –

PGI Cover




Commercial Loans & Options

Personal Guarantees form part of the total commercial finance structure, for more information on commercial loan options and what Lime Consultancy can add in this regard then see the dedicated areas of the website.

If you have any questions then please get in touch on 01293 541333 or contact us via the website.

Legal Notice – 

By clicking this link it will take you to the quote and buy website of PGI Cover a trading style of Ratae PGI Ltd an appointed representative of Professional Insurance Agents Ltd who are authorised and regulated by the Financial Conduct Authority. They will be able to help and quote you on various insurance products – we do not offer advice or services in this area of Insurance

7 thoughts on “Personal Guarantee Insurance

  • Hi

    Can you please contact me regarding Personal Guarantee Insurance, we will need it in regard to a £38,500.00 loan

    Kind regards
    David Baum
    Deanem Collections Ltd
    07985 991773

  • I am interested in obtaining personal guarantee insurance for a business that I’m looking to acquire. The business is located in the state of Minnesota in the United States. Please let me know if you are willing to underwrite policies in the United States or if you have a company or partner you could refer me to, that would be much appreciated.

    Thank you!

  • Please contact me regarding a personal guarantee for construction financing for a 100 unit multi-family apartment building in New Jersey in the amount of $23-$25 million US.
    Thank you,
    LLoyd Putter

  • I am interested in getting PGI for about 100,00 – 250,00 loan (USA)
    I am not sure of the loan amount yet I am applying with the SBA Loan and will be informing them that I will be trying to obtain the PGI to secure my loan with some of the money I receive.
    Amy Glasgow

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