image of a man signing paperwork for website J&J Commercial Finance Personal Guarantee Insurance

Personal Guarantee Insurance

We have partnered with a Personal Guarantee (PG) insurance specialist, currently the UK’s only current provider of Personal Guarantee Insurance (PGI), to provide you with a solution that gives you the confidence to grow your business through securing crucial finance, whilst protecting your personal assets.

What is PGI?

PGI provides cover to Directors of Ltd Companies based in the UK who have signed a PG in relation to commercial finance.  If the company enters insolvency, the Policy steps in and pays a set percentage of the PG commitment directly to the lender.

PGI provides:

  • 80% cover for PGs signed in support of secured finance
  • 60% cover in the first year for PGs attached to unsecured finance, rising to 70% in year two, then 80% in year three and thereafter
  • A maximum level of cover of £400,000 for secured loans and £300,000 for unsecured loans
  • Unlimited access to the Business Support Service which provides invaluable support during financial difficulties
  • £10,000 cover for a professional debt negotiator to arrange settlement with the lender
  • Cover for multiple Directors on one Policy at no extra cost if the PG is signed on a joint and several liability basis
  • Cover for multiple guarantees on one Policy

PGI is available against a wide range of business loans, including invoice finance, asset-based loans, commercial mortgages, peer-to-peer loans, development loans and more.  Why not have an informal chat with the professionals and make sure that you are not risking your personal assets unnecessarily.

How to get a quote

Contact us for an application form or follow the link below to access it online.  A member of the provider’s Support Team will contact you shortly after to discuss your options.

Click here for a quote




Who provides the cover?

Personal Guarantee Insurance (PGI) is provided by Purbeck Insurance Services, whose Policies are backed by Markel International Insurance Company Ltd.  The Markel Corporation has been around for over 90 years, and is an A rated insurer as rated by A.M. Best (A), Fitch (A+) and S&P (A) – so you’re in safe hands!

Can I take out the cover?

PGI is available to Directors of Limited Companies or Partners of Limited Liability Partnerships based in the UK.

What can I cover?

Purbeck can cover PGs attached to a wide range of business loans, including asset finance, commercial mortgages, invoice finance, overdrafts, peer to peer loans and other secured or unsecured loans.  If in doubt, we would recommend speaking with a member of the Purbeck support team to see if your current requirement is insurable.

How much can I cover?

Purbeck offer a maximum level of cover of £400,000 for secured loans and £300,000 for unsecured loans.

What if my co-Director also needs cover?

No problem!  You can add up to five Directors to one Policy at no extra cost if the PG has been signed ‘jointly and severally’.

What if I have more than one loan?

Purbeck can group certain PGs together on one Policy.  If you have two PGs attached to secured lending, for example, you could have one Policy that covers them both.

Does the Policy cover my entire loan term?

PGI is an annual Policy – every year the Purbeck team will get in touch to discuss your requirements and issue a new 12-month premium that reflects the most accurate PG amount.  Typically, as you pay off your loan, your sum insured will reduce and your premiums along with it!

How much does the cover cost?

Premiums are calculated on a case-by-case basis, so it’s hard to give an accurate indication.  As a rough guide though, premium rates are somewhere between 1.6% and 3.6% of the PG amount.

Do I have to pay in one go?

Not at all – you can either pay up front or across the year via Direct Debit (charges apply).

Are there any other fees involved in setting up a Policy?

Purbeck charge an arrangement fee of between £100 and £500 per Policy.  The fee must be paid up front, within 30 days of the Policy inception.

When should I look at getting cover in place?

We would suggest that you investigate PGI once you have secured a loan offer – you will then be in the best position to provide the most accurate information regarding your loan and also receive the most accurate premium rates and information from Purbeck, avoiding any changes that may occur if you get in touch too soon.

How quickly can I get cover in place?

Once Purbeck have received your completed application, they will aim to contact you within 24 hours to have an initial discussion about your requirements. Often, they will require more management information to assess the current strength of your business and underwrite the risk appropriately, so this can take a little time depending on how quickly you can provide it.  However, for a straightforward case that requires no further information, PGI can be set up within a matter of hours!