Coverage rates for Personal Guarantee Insurance are improved
Posted on 10th Dec 2014 14:51:41 in Personal Guarantee Insurance
The coverage of PG's under Personal Guarantee Insurance have been improved. Coverage used to start at 35% of the amount of the PG in year 1.
We have now significantly improved coverage. It will now start at 50% of the amount of the PG. So for example a £100,000 personal guarantee will now generate an indemnity sum in the first year alone of £50,000.
For almost every insured this is going to fully indemnify the liability to the lender. A useful example of this would be the case of a Director who has provided a PG under an Invoice Discount agreement. In the event that the company fails, the Invoice Discounter will collect in the debts. Perhaps not all of those debts will be paid and the Director will be asked to make good the shortfall under his PG. If the shortfall is as much as £40,000, then in this example the whole of that liability even in year 1, will be met by the insurance.