Personal guarantee insurance for manufacturer
Our client was in the process of taking out commercial finance but was concerned by the personal guarantee he was being asked to sign.
Client: Personal guarantee insurance for manufacturer
Location: Leigh-on-Sea
Service: Personal Guarantee Insurance
Description
John, our client, is a business owner in manufacturing who needed to obtain commercial finance. The lender required that he sign a personal guarantee as a condition of the loan offer, which meant that John’s personal assets could be at risk if the business failed. John wanted to protect himself from this risk and so decided to take out personal guarantee insurance.
Key Challenges
The main challenge was to find an insurance policy that would cover the specific personal guarantee that John had signed with the lender. The policy also needed to be affordable and provide comprehensive coverage, ensuring that John’s personal assets would be protected in case the business failed. Furthermore, the insurance policy needed to meet the lender’s requirements to ensure that it was a valid option for the client.
Outcome
John worked with an insurance broker who helped him find a suitable personal guarantee insurance policy that met all of his requirements. The policy provided coverage for the specific personal guarantee that John had signed and protected his personal assets in case the business failed. The premiums were affordable and the policy was approved by the lender, providing peace of mind for both John.
The successful outcome ensured that John was well protected against the risks associated with a personal guarantee, providing security for both himself and his family. The insurance broker’s expertise and tailored approach enabled John to secure a policy that provided the necessary coverage and met the lender’s requirements. This case study highlights the importance of personal guarantee insurance for business owners who sign personal guarantees and the value of working with an experienced insurance broker to find the right policy.