Personal
Guarantee
Insurance (PGI)
At QED Finance, we understand the challenges your clients face with personal guarantees on business finance.
As the need for these guarantees resurfaces, Personal Guarantee Insurance (PGI) has become a crucial tool for safeguarding personal assets.
The Rise of Personal Guarantee Insurance
PGI is increasingly popular for various finance types, including:
- Commercial Mortgages
- Bridging Loans
- Development Funding
- Asset Finance
- Invoice Finance
- Secured & Unsecured Loans
Premiums
Premiums vary based on individual circumstances
2.5% - 4.5% + IPT *
of the guarantee sum insured
Key Benefits of PGI for Your Clients
- Comprehensive Coverage: Policy can cover up to 5 Directors or Shareholders, and is available for historic loans with existing guarantees.
- Tax Efficiency: PGI is a P11D neutral expense, allowing it to be processed through the company’s books, thus saving on Corporation Tax.
- Flexible Payment Options: Premiums can be paid monthly or annually.
What is Personal Guarantee Insurance?
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 £550,000 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.
Spread the word
We have created a dedicated page that you can send your clients to. This will explain in detail PGI insurance and also provide them with a link to get a no obligation quote.
Please click here to copy the link:
As a matter of standard practice we advise all our clients about the availability of this insurance. Contact us to learn more about how PGI can benefit your clients and support their business growth.
