Personal Guarantee Insurance

Personal Guarantee Insurance (PGI) provides insurance for individuals (usually Directors) who have given a Personal Guarantee to a lender in respect of the borrowings of the Limited Company.

The insurance policy indemnifies the individual in the event that the Limited Company becomes insolvent and the personal guarantee is called upon by the lender.

Personal Guarantee Insurance (PGI)

PGI is available against a number of Limited Company borrowings:

  • Invoice finance
  • Asset based lending
  • Commercial finance
  • Other secured borrowings
  • Unsecured borrowings
  • Peer-to-peer loans

How it works:

The level of cover is varied as to whether the underlying finance facility is secured or unsecured. Unsecured cover works as a fixed percentage of the personal guarantee amount and would progress as follows:

  • Year one: 60%
  • Year two: 70%
  • Year three and thereafter: 80%

Secured risks work slightly differently. The policy will cover 80% of whatever amount the underwriter agrees as settlement on behalf of the policyholder with the lender, up to 80% of the guarantee amount. For example:

  • £100,000 personal guarantee
  • The underwriter agree a settlement of £50,000 with the lender
  • The underwriters pay £40,000 and the policyholder pays £10,000

The annual premium is calculated based on the applicant circumstances and the individual requirements of the applicant. Successful applicants will have a choice to pay the premium upfront in full or via a monthly direct debit instalment facility.

About Edison Ives

We are an innovative insurance brokerage that places our customers’ needs firmly at our core. We are committed to helping customers who require vape retailers insurance. We provide a great service, utilising the latest technologies, and keeping our overheads low. Why? Well, we want to provide our customers with the most competitive price possible for the right cover. Simple.

We love working with like minded businesses that are independent, proud and unique. We are a one-stop-shop for people looking to minimise the risks to their businesses and assets.

We are also proud members of Hedron Network, who support and represent a collection of like minded independent insurance brokerages across the UK. By collaborating with the Network, we have the buying power to give our customers great products at  great prices.

Please get in touch if there’s anything we can do to assist. Our contact details can be found by Clicking Here