Personal Guarantee Insurance UK 2026

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Personal Guarantee Insurance (PGI) protects UK directors who've signed a personal guarantee on an invoice finance facility, business loan, asset finance or trade credit if the lender calls the PG. Cover typically pays 60 to 80 percent of the PG amount called, up to a chosen sum insured (Purbeck caps cover at £500,000 on unsecured and £750,000 on secured borrowing, with unsecured cover rising from 60% in year one to 80% from year three). The best-known UK specialist is Purbeck; other insurers and some finance brokers also arrange cover. Purbeck's published premiums typically run 1.6 to 5.2 percent of the cover sum per year. Standard cover is for unrecoverable PG calls following the borrower business going into insolvency, not for fraud or misconduct (which voids the cover). Worth buying for any director with personal exposure of £25k+ on PGs against business borrowing.

What this page covers

This page covers

personal guarantee insurance UK: cover, cost, providers, eligibility, timing for directors with PG exposure

Not covered here

General invoice finance education (see /guides/), individual provider reviews (see /providers/), full pricing breakdown (see /guides/costs/)

AP

Adam Parker

Founder & Managing Director, Muswell Rose, founder and PSC of Best Business Loans Ltd

Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind Market Invoice. He spent over three years as managing director of Penny, a UK invoice finance business, and his career runs through insurance, mortgages, commercial finance and fintech lending. He writes the Market Invoice library.

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Personal Guarantee Insurance UK FAQ

What is Personal Guarantee Insurance UK?

Insurance that pays out 60-80% of the personal guarantee amount called if a lender enforces the PG following business insolvency. Used by UK directors with personal exposure of £25k+ on invoice finance facilities, business loans, asset finance or trade credit guarantees.

How much does Personal Guarantee Insurance cost?

Purbeck, the best-known UK specialist, publishes premium rates of typically 1.6% to 5.2% a year. Example: £100k of cover = roughly £1,600-£5,200 annual premium. Pricing varies by: industry sector, business turnover, age of business, director credit profile, type of underlying borrowing (invoice finance is usually lower premium than unsecured term loans). Multi-year policies sometimes available at discount.

What does Personal Guarantee Insurance cover?

Cover pays 60-80% of the PG amount called by the lender, up to the sum insured. Standard exclusions: fraud or misrepresentation by the director (which voids the cover), undisclosed pre-existing financial difficulties at policy inception, PGs already called or pending call at policy start. Cover applies after business insolvency (administration, liquidation, CVA) where the lender enforces the PG against the director.

Best UK Personal Guarantee Insurance providers?

Purbeck Insurance Services is the best-known UK specialist and publishes its cover terms. Other insurers and some commercial finance brokers can also arrange PGI alongside a finance facility. Get quotes from at least 2 specialists before committing.

Is Personal Guarantee Insurance worth it?

Yes for directors with PG exposure £25k+ on facilities where business survival isn't certain. The maths: a premium of a few percent a year buys cover for 60-80% of the guarantee, so the case is strongest where there is a real chance the guarantee is called. For directors of multiple companies with cross-PGs, PGI is often the difference between personal solvency and bankruptcy if one company fails.

Can I get Personal Guarantee Insurance after I've signed the PG?

Yes, typically. Most PGI policies cover existing PGs at the point of policy inception, provided the underlying business isn't already in financial difficulty (which would be a non-disclosure issue). Get cover before the business shows distress; once a creditor has petitioned for winding up or you've engaged insolvency advisors, PGI becomes very hard to get.