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Personal Guarantee Insurance

We have partnered with a 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 profession 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 click here to access it online.  A member of the provider’s Support Team will contact you shortly after to discuss your options.

Case Study 1 - Claim

Snowboard on Snow

How Purbeck could be there to pay up to 80% of your Personal Guarantee for you.

With a Personal Guarantee Insurance (PGI) Policy from Purbeck Insurance, you could have cover of up to 80% of your PG amount.  Take a look at this case study to see an example of how they did just that.

PGI settlement for provider of winter sports holidays following acquisition from previous owner.


The business in this case had traded since the mid-90s and provided catered winter sports holidays in Europe. The business was acquired by the new management team following the retirement of the former owners. The business was acquired via leveraged finance, utilising an £850,000 loan from an alternative finance provider and £275,000 of own funds introduced.

Shortly after acquisition, the business experienced trading difficulties and increased overhead costs as a result of Brexit and increased competition which drove prices down. 

Expected increases in revenue did not materialise and the business developed working capital concerns as a result of the cyclical nature of the underlying business model, which was compounded by the revenue stagnation.

It was decided that following the acquisition in December, the business was to be placed into Administration in the following May by the appointed insolvency practitioners on the basis that it was technically insolvent and could not meet its creditor obligations. 

What support did Purbeck provide?

  • Pre-insolvency business advice

  • Introduced for possible refinance of existing facilities and repayment holidays

  • limit escalation of costsIntroduced the client to a Panel Member firm for early intervention and to

  • Personal Guarantee negotiator instructed to help reduce outstanding obligations under the Personal Guarantee


What were the final figures?
Original Personal Guarantee Amount - £200,000
Amount of cover provided by Policy – 80%
Final Settlement Figure Following Negotiations - £180,000
Total Claim Paid - £144,000
Total Paid Out in Fees - £2,600
Insureds Contribution - £36,000

If you’d like any further information about PGI, contact us today for an informal discussion, or click here to complete and online application. 

Case Study 2 – Business Support Service

Trampoline Flips

How Purbeck Insurance’s Business Support Service could have you bouncing back into business.

As part of a Personal Guarantee Insurance (PGI) Policy, you gain unlimited access to the Business Support Service – a dedicated network of professionals who are on hand to help you through any financial difficulties that you may encounter.  But how much of a difference could they really make?  Take a look at this case study to see just how crucial their input can be, and how they provided invaluable support to one of their clients and got their business back on track.

Trampoline Park gets firm support from Personal Guarantee Insurer at unsteady time.
It is no secret that managing cashflow is one of the hardest aspects of running a small business.

For many businesses in start-up mode who have secured finance to help get their idea off the ground, there is an urgent need to help offset the loan payments against income – and this is where problems can easily arise.

This was the case for Xtreme360, a trampoline park located in St Neots, Cambridgeshire.  The business was set up by its three directors who secured asset finance to fund the fit out of the building.  The directors were required to sign personal guarantees as a condition of the loan and they took the wise step of obtaining Personal Guarantee Insurance from Purbeck Insurance services to help protect their personal assets in the eventuality of the loan being called in.

Unfortunately, the business fell into cash flow difficulties.  Income was good but the profit was not covering the loan repayments to the extent they had hoped.  It was during this difficult period that the directors called upon the valuable advice and counselling offered by Purbeck to policyholders.

David Parr, the Finance Director of Xtreme360, explains:
Cash flow kills businesses and I could see this was becoming a real danger for us.  We had started this business with the best of intentions, but costs escalated and until the asset finance was paid off, we would be operating at a loss. 
We contacted Purbeck who helped us think through our options objectively.  They introduced us to a finance broker to look at refinancing the debts; discussed the option of sub-letting excess space within the premises; and introduced capital allowances experts.  They also put us in touch with one of Purbeck’s other clients who ran a franchised trampoline park to discuss best practices.

We worked out a restructuring of the finance and attracted a new investor who has got us back on track. 
Our debts are now settled which is a considerable weight lifted after three years of considerable stress.  Furthermore, the business is in excellent shape, very much a going concern and with growth plans working well.
Knowing that the Personal Guarantee insurance was in place created valuable peace of mind during a very difficult time, but Purbeck also did as much as they could to help us avoid defaulting on the loan.  Their help, guidance and counselling, to me personally, over a significant period, was invaluable and very much appreciated.”

Todd Davison, Director of Purbeck Insurance Services adds:
“Xtreme360’s experience as a start-up is far from unique.  This is why it’s vital that directors of small businesses look at ways they can mitigate the risk to their personal assets if they take a personal guarantee backed loan.  But we also know that in many instances there are ways through the trading problems our policyholders face and will do our utmost to support them.  We are delighted to have helped Xtreme360 bounce back after a tough first three years.”


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 Contact our experienced Brokers to see how we can help your business grow