What is PGI?
Personal Guarantee Insurance provides cover to Directors of UK Ltd Companies who have signed a Personal Guarantee (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.
- 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
- Maximum underlying loan £2.5 million and £4 million for invoice financing
- Unlimited access to the Business Support Service which provides invaluable support during financial difficulties
- £10,000 cover for a professional debt negotiator to arrange a settlement with the lender
- Premiums paid by the company as a P11D neutral expense which is deductible against Corporation Tax
- 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