Posted on 16th Nov 2015 16:26:30 in Personal Guarantee Insurance
Twice already in the last 7 days, we have been able to help businesses deal with the issue of existing PG's giving in one case by a Partner and in the other by a Director, who were exiting the business.
Many of you will have advised businesses where a departing Director wants to get his PG released. It can be extremely tricky. Lenders are quite understandably reluctant to release any security previously taken without replacing it.
Solutions suggested range from finding a replacement PG or putting cash into a bond.
Neither is particularly palatable. However, we have been able to arrange insurance for in one case the departing Partner to cover his PG and in the other the Directors took out insurance to cover any potential liability under the PG's effectively providing a complete indemnity to the departing party.
Hence if you come across a situation in your business or when advising that might be sorted out this way, give me a call.