As a condition of raising business finance, directors are often required to provide additional security to the lender by signing a personal guarantee. By doing so, the director is placing his or her personal assets at risk. Personal guarantee insurance may reduce this risk.
WHAT IS IT?
Personal guarantee insurance is an annual insurance policy that provides directors with cover in the event the business lender calls on their personal guarantee following insolvency.
BENEFITS OF PERSONAL GUARANTEE INSURANCE
In the unfortunate event the business becomes insolvent, the lender can call on the personal guarantee to recover some of the shortfalls due on the outstanding finance obligations that the business owes to the lender.
Personal guarantee insurance can therefore prevent the loss of your personal wealth.
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