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As you know, running a business comes with its fair share of risks. You work tirelessly to get your venture off the ground, and securing funding is often a crucial step. But sometimes, lenders require a personal guarantee from directors or owners. This means that if the business can't repay the loan, you're personally on the hook – your house, savings, everything could be at stake.

This is where (PGI) steps in. It's a safety net, an insurance policy specifically designed to protect you, the business owner, in the unfortunate event your company defaults on a loan with a personal guarantee attached.

Here's why PGI should be on your radar:

• Peace of Mind: Knowing your personal assets are shielded from business debts allows you to focus on what truly matters – running and growing your company.
• Risk Management: Business ventures are inherently unpredictable. PGI mitigates the personal financial risk associated with loans, safeguarding your personal wealth.
• Easier Access to Funding: With PGI in place, lenders may view your business as less risky, potentially increasing your chances of securing a loan and negotiating better terms.
• Business Continuity: If the worst happens and your business encounters financial difficulty, PGI can help you weather the storm without jeopardising your personal financial security. This can be crucial for restructuring or finding new investors.
• Remember, PGI isn't a replacement for careful business planning.  It's a safeguard against unforeseen circumstances. It's also important to note that not all loans require personal guarantees, and PGI policies have exclusions and limitations.

My recommendation?

Talk to our financial advisor and myself about your specific situation.  We can help you determine if a personal guarantee is likely to be required for funding and explore PGI options that suit your needs.

At Quality ÒõÌÒÓ°Ôº, we understand the challenges business owners face. We're here to help you navigate the complexities of business insurance, including PGI. Don't hesitate to reach out – we're happy to answer your questions and guide you towards the right coverage.

Call our General Insurance Team on 01273 424904 with any questions.